0001606366-26-000017 | 10-K | XBRL Viewer | EL Pollo Loco Holdings INC

INCOME TAXES

12 Months Ended

Dec. 31, 2025

10. INCOME TAXES

The provision for income taxes is based on the following components (in thousands):


	December 31,		December 25,		December 27,
	2025		2024		2023
Current tax expense
U.S. Federal	$	6,569	$	8,945	$	6,572
U.S. State and local		3,117		3,517		1,846
Total current tax expense		9,686		12,462		8,418
Deferred tax expense (benefit)
U.S. Federal		1,254		(2,105)		(29)
U.S. State and local		149		(752)		935
Total deferred tax expense (benefit)		1,403		(2,857)		906
Total income tax expense
U.S. Federal		7,823		6,840		6,543
U.S. State and local		3,266		2,765		2,781
Total income tax expense	$	11,089	$	9,605	$	9,324

The table below provides the updated requirements of ASU No. 2023-09, Improvements to Income Tax Disclosures for fiscal 2025, 2024 and 2023. The provision for income taxes differs from the amount computed by applying the federal income tax rate of 21.0% for fiscal 2025, 2024 and 2023 as follows (amounts in thousands):


	December 31,					December 25,					December 27,
	2025					2024					2023
	Amount			Percent		Amount			Percent		Amount			Percent
U.S. federal statutory tax rate	$	7,891		21.0	%	$	7,411		21.0	%	$	7,324		21.0	%
State and local income taxes, net of federal income tax effect (1) (2)		2,580		6.9			2,157		6.1			2,185		6.3
Tax credits												—		—
WOTC credit		(164)		(0.4)			(163)		(0.5)			(295)		(0.7)
Nontaxable or nondeductible items
Stock option exercises		62		0.2			32		0.1			33		0.1
Nondeductible stock compensation expense		27		—			54		0.2			166		0.5
162(m) nondeductible executive compensation		614		1.6			6		—			194		0.6
Other		13		—			142		0.4			84		—
Changes in unrecognized tax benefits		—		—			—		—			—		—
Other adjustments		—		—			—		—			—		—
Deferred tax liability true up		66		0.2			—		—			(381)		(1.1)
Other		—		—			(34)		(0.1)			14		0.0

Effective tax rate	$	11,089		29.5	%	$	9,605		27.2	%	$	9,324		26.7	%

(1)	State taxes in California made up the majority (greater than 50 percent) of the tax effect in this category.

(2)	During fiscal 2023, the ten-year carryover period for California Enterprise Zone credits expired, and the Company released the corresponding valuation allowance.


	For the Fiscal Years Ended
Income Taxes Paid (Net of Refunds Received)	December 31, 2025		December 25, 2024		December 27, 2023
U.S. Federal	$	5,955	$	7,541	$	6,174
State:
California		3,766		2,720		1,503
Other		9		90		44

Total

9,730

10,351

7,721

As of December 31, 2025, the Company had no federal and less than $0.1 million state NOL carryforwards. These State NOLs expire beginning 2029. The utilization of NOL carryforwards and state enterprise zone credits may be subject to limitation under section 382 of the Internal Revenue Code of 1986 (the “Code”) and similar state law provisions.

Deferred income tax assets and liabilities are recorded for differences between the financial statement and tax basis of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

The Company has evaluated the available evidence supporting the realization of its gross deferred tax assets. After evaluating all of the positive and negative evidence, including the Company’s continued income from operations, the Company concluded that it is more likely than not that its deferred tax assets will be realized. As of December 31, 2025 and December 25, 2024, the Company had no valuation allowance.

The Company’s deferred tax assets and liabilities as of December 31, 2025 and December 25, 2024 are summarized below (in thousands).


		December 31,			December 25,
		2025			2024
Deferred assets:
Capital leases		$	75		$	69
Accrued vacation			482			466
Accrued legal			128			—
Accrued workers’ compensation			1,973			2,099
Accrued payroll			6			5
Net operating losses			5			5
Fixed assets			2,759			2,981
ROU liabilities			51,187			51,160
Other			7,297			7,893
Total deferred tax assets			63,912			64,678
Deferred liabilities:
Goodwill			(5,962)			(5,961)
Trademark			(16,812)			(16,808)
Prepaid expense			(1,051)			(1,012)
ROU assets			(45,631)			(45,790)
Fixed assets			(1,880)			(1,128)
Total deferred tax liabilities			(71,336)			(70,699)
Net deferred tax liability		$	(7,424)		$	(6,021)

The net deferred tax asset/(liability) amounts above as of December 31, 2025 and December 25, 2024 have been classified in the accompanying consolidated balance sheets as noncurrent assets/(liabilities) and are as follows (in thousands):


		December 31,			December 25,
		2025			2024
Noncurrent:
Assets - state		$	187		$	336
Liabilities - federal			(7,611)			(6,357)

As of December 31, 2025 and December 25, 2024, the Company had no accrual for unrecognized tax benefits. Consequently, no interest or penalties have been accrued by the Company. The Company is subject to taxation in the United States and in various state jurisdictions.

The Company is no longer subject to U.S. examination for years before 2022 by the federal taxing authority, and for years before 2021 by state taxing authorities.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

LEASES - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
LEASES - Lease Cost (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
Lessee, Lease, Description [Line Items]
Amortization of right-of-use assets	$ 202	$ 176	$ 75
Interest on lease liabilities	55	54	45
Fixed rent cost	29,956	28,619	27,984
Short-term lease cost	52	1	8
Variable lease cost	1,983	1,897	1,825
Sublease income	(7,244)	(7,053)	(5,570)
Total lease cost	25,004	23,694	24,367
Occupancy and other operating expenses
Lessee, Lease, Description [Line Items]
Total lease cost	24,042	23,046	23,736
General & administrative
Lessee, Lease, Description [Line Items]
Total lease cost	704	366	492
Depreciation and amortization
Lessee, Lease, Description [Line Items]
Total lease cost	192	176	75
Interest expense
Lessee, Lease, Description [Line Items]
Total lease cost	55	54	45
Closed-store reserve
Lessee, Lease, Description [Line Items]
Total lease cost	11	52	19
Property Leases
Lessee, Lease, Description [Line Items]
Amortization of right-of-use assets	84	76	73
Interest on lease liabilities	41	36	40
Fixed rent cost	29,544	28,287	27,597
Variable lease cost	534	553	546
Sublease income	(7,244)	(7,053)	(5,570)
Total lease cost	22,959	21,899	22,686
Equipment Leases
Lessee, Lease, Description [Line Items]
Amortization of right-of-use assets	118	100	2
Interest on lease liabilities	14	18	5
Fixed rent cost	412	332	387
Short-term lease cost	52	1	8
Variable lease cost	1,449	1,344	1,279
Total lease cost	$ 2,045	$ 1,795	$ 1,681

LEASES - Minimum Future Lease Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 25, 2024
Finance Minimum Lease Payments
For the Years Ending December 30, 2026	$ 169
For the Years Ending December 29, 2027	159
For the Years Ending December 27, 2028	115
For the Years Ending December 26, 2029	99
Finance Lease, Liability, to be Paid, Year Five	93
Thereafter	957
Total	1,592
Less: imputed interest	(14)
Present value of lease obligations	1,578
Less: current maturities	(142)	$ (170)
Noncurrent portion	1,436	1,583
Operating Leases Minimum Lease Payments
For the Years Ending December 30, 2026	28,905
For the Years Ending December 29, 2027	28,199
For the Years Ending December 27, 2028	24,763
For the Years Ending December 26, 2029	21,972
For the Years Ending December 29, 2028	19,079
Thereafter	102,570
Total	225,488
Less: imputed interest	(37,060)
Present value of lease obligations	188,428
Less: current maturities	(17,616)	(19,738)
Noncurrent portion	170,812	$ 170,529
Operating Leases Minimum Sublease Payments
For the Years Ending December 30, 2026	5,680
For the Years Ending December 29, 2027	5,704
For the Years Ending December 27, 2028	5,410
For the Years Ending December 26, 2029	4,834
For the Years Ending December 29, 2028	4,485
Thereafter	29,750
Total	$ 55,863
Minimum
Operating Leases Minimum Sublease Payments
Imputed interest rate	2.57%
Maximum
Operating Leases Minimum Sublease Payments
Imputed interest rate	6.42%

SHAREHOLDER RIGHTS AGREEMENT (Details) - $ / shares	Dec. 31, 2025	Dec. 25, 2024	Aug. 08, 2023
RIGHTS AGREEMENT
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Preferred stock, par value (usd per share)	$ 0.01	$ 0.01
Preferred shares purchase right
RIGHTS AGREEMENT
Dividends declared			1
Common stock, par value (usd per share)			$ 0.01
Preferred stock, par value (usd per share)			$ 0.01
Preferred shares purchase right \| Series A Preferred Stock
RIGHTS AGREEMENT
Shares called by purchase right			0.001
Share price			$ 53.75

DESCRIPTION OF BUSINESS (Details)	12 Months Ended
DESCRIPTION OF BUSINESS (Details)	Dec. 31, 2025 restaurant segment
Franchisor Disclosure [Line Items]
Number of Operating Segments \| segment	1
Philippines
Franchisor Disclosure [Line Items]
Number of Restaurants	8
Company-operated
Franchisor Disclosure [Line Items]
Number of Restaurants	175
Company-operated \| Greater Los Angeles area market
Franchisor Disclosure [Line Items]
Number of Restaurants	132
Franchised
Franchisor Disclosure [Line Items]
Number of Restaurants	328
Franchised \| Greater Los Angeles area market
Franchisor Disclosure [Line Items]
Number of Restaurants	148

REVENUE FROM CONTRACTS WITH CUSTOMERS

12 Months Ended

Dec. 31, 2025

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS

15. REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue Recognition

Nature of products and services

The Company has two revenue streams, company-operated restaurant revenue and franchise related revenue. See Note 2 “Summary of Significant Accounting Policies” for a description of the revenue recognition policies.

Franchise and franchise advertising fee revenue

Franchise revenue consists of franchise royalties, initial and renewal franchise fees, license fees due from franchisees, IT support services, IT pass through fees related to IT hardware or software and rental income for subleases to franchisees. Franchise advertising fee revenue consists of advertising contributions received from franchisees.

Disaggregated revenue

The following table presents the Company’s revenues disaggregated by geographic market for the years ended December 31, 2025, December 25, 2024 and December 27, 2023:


		December 31, 2025			December 25, 2024			December 27, 2023
Greater Los Angeles area market		71.9	%		72.0	%		71.3	%
Other markets		28.1	%		28.0	%		28.7	%
Total		100	%		100	%		100	%

Contract balances

The following table provides information about the change in the franchise contract liability balances during the year ended December 31, 2025 and December 25, 2024 (in thousands):


December 27, 2023	$	6,997
Revenue recognized		(625)
Additional contract liability		358
December 25, 2024	$	6,730
Revenue recognized		(1,150)
Additional contract liability		573
December 31, 2025	$	6,153

The Company’s franchise contract liability includes development fees, initial franchise and license fees, franchise renewal fees, lease subsidies and royalty discounts and is included within other accrued expenses and current liabilities and other noncurrent liabilities within the accompanying consolidated balance sheets. The Company receives area development fees from franchisees when they execute multi-unit area development agreements. Initial franchise and license fees, or franchise renewal fees, are received from franchisees upon the execution of, or renewal of, a franchise agreement. Revenue is recognized from these agreements as the underlying performance obligation is satisfied, which is over the term of the agreement.

The following table illustrates the estimated revenue to be recognized in the future related to performance obligations that are unsatisfied as of December 31, 2025 (in thousands):


Franchise revenues:
2026	$	552
2027		540
2028		523
2029		495
2030		470
Thereafter		3,573
Total	$	6,153

Changes in the loyalty rewards program liability included in other accrued expenses and current liabilities on the consolidated balance sheets were as follows (in thousands):


	December 31, 2025			December 25, 2024
Loyalty rewards liability, beginning balance	$	844		$	687
Revenue deferred		2,667			2,181
Revenue recognized		(2,405)			(2,024)
Loyalty rewards liability, ending balance	$	1,106		$	844

The Company expects all loyalty points revenue related to performance obligations unsatisfied as of December 31, 2025 to be recognized within one year.

Gift Cards

The gift card liability included in other accrued expenses and current liabilities on the consolidated balance sheets was as follows (in thousands):


	December 31, 2025		December 25, 2024
Gift card liability	$	5,559	$	5,100

Revenue recognized from the redemption of gift cards that was included in other accrued expenses and current liabilities at the beginning of the year was as follows (in thousands):



	December 31, 2025		December 25, 2024		December 27, 2023
Revenue recognized from gift card liability balance at the beginning of the year	$	863	$	1,059	$	1,064

Contract Costs

The Company does not currently incur costs to obtain or fulfill a contract that would be considered contract assets under Topic 606.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-7

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+ Details

EMPLOYEE BENEFIT PLANS - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
Defined Contribution Plan Disclosure [Line Items]
Qualified compensation of employees that may be contributed, maximum	25.00%
Benefit contribution	$ 0.9	$ 0.8	$ 0.8
First 3% of Annual Qualified Compensation
Defined Contribution Plan Disclosure [Line Items]
Employer's matching contribution	100.00%
Percentage of employees' annual qualified compensation matched	3.00%
Next 2 % of Annual Qualified Compensation
Defined Contribution Plan Disclosure [Line Items]
Employer's matching contribution	50.00%
Percentage of employees' annual qualified compensation matched	2.00%

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2025

EARNINGS PER SHARE

EARNINGS PER SHARE

13. EARNINGS PER SHARE

Basic EPS is calculated using the weighted-average number of shares of common stock outstanding during the years ended December 31, 2025, December 25, 2024, and December 27, 2023. Diluted EPS is calculated using the weighted-average number of shares of common stock outstanding and potentially dilutive during the period, using the treasury stock method.

Below are basic and diluted EPS data for the periods indicated, which are in thousands except for per share data.


		For the Years Ended
		December 31,			December 25,			December 27,
		2025			2024			2023
Numerator:
Net income		$	26,486		$	25,684		$	25,554
Denominator:
Weighted-average shares outstanding—basic			29,178,940			29,850,256			34,253,542
Weighted-average shares outstanding—diluted			29,396,890			30,034,978			34,374,706
Net income per share—basic		$	0.91		$	0.86		$	0.75
Net income per share—diluted		$	0.90		$	0.86		$	0.74
Anti-dilutive securities not considered in diluted EPS calculation			1,041,605			742,663			972,181

Below is a reconciliation of basic and diluted share counts.


		For the Years Ended
		December 31,		December 25,		December 27,
		2025		2024		2023
Weighted-average shares outstanding—basic		29,178,940		29,850,256		34,253,542
Dilutive effect of stock options and restricted shares		217,950		184,722		121,164
Weighted-average shares outstanding—diluted		29,396,890		30,034,978		34,374,706

Share Repurchases

Share Repurchase Program

On November 2, 2023, the Company announced that the Board approved a share repurchase program (“Share Repurchase Program”) under which the Company was authorized to repurchase up to $20,000,000 of shares of the Company’s common stock. Under the Share Repurchase Program, the Company was permitted to repurchase its common stock from time to time, in amounts and at prices that the Company deemed appropriate, subject to market conditions and other considerations. Pursuant to the Share Repurchase Program, the Company was authorized to effect repurchases using open market purchases, including pursuant to Rule 10b5-1 trading plans, and/or through privately negotiated transactions. The repurchase program did not obligate the Company to acquire any particular number of shares. The repurchase program was terminated on March 31, 2025.

Further, on December 4, 2023, the Company repurchased 1.5 million shares for a total purchase price of $12.6 million under the Stock Repurchase Program. Following completion of this repurchase, approximately $7.4 million of the Company’s common stock remained available for repurchase under the Share Repurchase Program at December 27, 2023.

For the year ended December 25, 2024, the Company repurchased 535,628 shares of common stock under the Share Repurchase Program, using open market purchases, for total consideration of approximately $5.6 million. Following the completion of these repurchases, approximately $1.8 million of our common stock remained available for repurchases under the Share Repurchase Program.

During the year ended December 31, 2025, prior to the termination of the program on March 31, 2025, the Company repurchased 163,229 shares of its common stock for a total purchase price of $1.8 million under the Stock Repurchase Program.

Other Share Repurchases

On August 7, 2023, the Company entered into a Stock Repurchase Agreement with the Sellers, as amended on August 4, 2024, pursuant to which the Company agreed to purchase an aggregate of 2,500,000 shares of the Company’s common

stock from the Sellers at a price of $10.63 per share, representing the closing price of such shares as listed on Nasdaq on August 7, 2023, for a total purchase price of $26.6 million. The repurchase was completed in August 2023.

Further, on May 23, 2024, the Company entered into a new Stock Repurchase Agreement with the Sellers, pursuant to which the Company agreed to purchase an aggregate of 1,534,303 shares of its common stock from the Sellers at a price of $9.785 per share for a total purchase price of $15.0 million. The repurchase was completed in May 2024.

Prior to the repurchase, Freeman Spogli & Co. (“Freeman Spogli”), collectively with the Sellers and certain other funds managed by Freeman Spogli, was the Company’s largest stockholder. In addition, John Roth, a director of the Company until his resignation on August 16, 2023, was a general partner of Freeman Spogli and its chief executive officer.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deferred Financing Costs and Insurance Reserves (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Amortization of deferred financing costs	$ 195	$ 197	$ 201
Accrued insurance	11,987	11,417
Expense for payroll and benefits reserves	11,100	9,900	9,200
Workers' compensation	10,300	10,100
Other Assets
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Deferred financing fees net of accumulated amortization	300	500
Interest expense
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Amortization of deferred financing costs	$ 200	$ 200	$ 200

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2025

EARNINGS PER SHARE

Schedule of computation of basic and diluted net income per share

Below are basic and diluted EPS data for the periods indicated, which are in thousands except for per share data.


		For the Years Ended
		December 31,			December 25,			December 27,
		2025			2024			2023
Numerator:
Net income		$	26,486		$	25,684		$	25,554
Denominator:
Weighted-average shares outstanding—basic			29,178,940			29,850,256			34,253,542
Weighted-average shares outstanding—diluted			29,396,890			30,034,978			34,374,706
Net income per share—basic		$	0.91		$	0.86		$	0.75
Net income per share—diluted		$	0.90		$	0.86		$	0.74
Anti-dilutive securities not considered in diluted EPS calculation			1,041,605			742,663			972,181

Schedule of reconciliation of basic and diluted share counts

Below is a reconciliation of basic and diluted share counts.


		For the Years Ended
		December 31,		December 25,		December 27,
		2025		2024		2023
Weighted-average shares outstanding—basic		29,178,940		29,850,256		34,253,542
Dilutive effect of stock options and restricted shares		217,950		184,722		121,164
Weighted-average shares outstanding—diluted		29,396,890		30,034,978		34,374,706

OTHER NONCURRENT LIABILITIES - Schedule of Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 25, 2024
OTHER NONCURRENT LIABILITIES
Deferred franchise and development fees	$ 5,607	$ 6,191
Other	26	27
Total other noncurrent liabilities	$ 5,633	$ 6,218

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 25, 2024
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid insurance	$ 2,634	$ 2,574
Prepaid service fees	2,953	2,255
Other current assets	782	680
Total prepaid expenses and other current assets	$ 6,369	$ 5,509

REVENUE FROM CONTRACTS WITH CUSTOMERS - Unsatisfied Performance Obligation (Details) $ in Thousands	Dec. 31, 2025 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2031-12-25
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period
Franchise revenue
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligations	$ 6,153
Franchise revenue \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-12-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Unsatisfied performance obligations	$ 552
Franchise revenue \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-12-30
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Unsatisfied performance obligations	$ 540
Franchise revenue \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-12-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Unsatisfied performance obligations	$ 523
Franchise revenue \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-12-27
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Unsatisfied performance obligations	$ 495
Franchise revenue \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2030-12-26
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Unsatisfied performance obligations	$ 470
Franchise revenue \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2031-12-25
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligations	$ 3,573

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 26,486	$ 25,684	$ 25,554
Other comprehensive (loss) income
Reclassifications of loss into net income			(170)
Income tax benefit			44
Other comprehensive (loss), net of taxes			(126)
Comprehensive income	$ 26,486	$ 25,684	$ 25,428

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

LEASES - Cash and Non-cash Lease Activities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
Lessee, Lease, Description [Line Items]
Operating cash flows used for operating leases	$ 29,353	$ 28,686	$ 28,156
Financing cash flows used for finance leases	223	207	158
Operating lease ROU assets	17,467	21,798	21,502
Finance lease ROU assets		148	135
Derecognition of ROU assets due to terminations, impairment or modifications			(44)
Property Leases
Lessee, Lease, Description [Line Items]
Operating cash flows used for operating leases	28,982	28,376	27,835
Financing cash flows used for finance leases	95	93	93
Operating lease ROU assets	$ 17,464	$ 20,504	21,448
Derecognition of ROU assets due to terminations, impairment or modifications			$ (40)
Weighted-average remaining years in lease term-finance leases	14 years 10 months 9 days	15 years 10 months 17 days	16 years 10 months 13 days
Weighted-average remaining years in lease term-operating leases	9 years 7 months 13 days	10 years 1 month 17 days	10 years 5 months 1 day
Weighted-average discount rate-finance leases	2.57%	2.57%	2.57%
Weighted-average discount rate-operating leases	5.36%	5.31%	5.00%
Equipment Leases
Lessee, Lease, Description [Line Items]
Operating cash flows used for operating leases	$ 371	$ 310	$ 321
Financing cash flows used for finance leases	128	114	65
Operating lease ROU assets	3	1,294	54
Finance lease ROU assets	0	$ 148	135
Derecognition of ROU assets due to terminations, impairment or modifications	$ 0		$ (4)
Weighted-average remaining years in lease term-finance leases	2 years 8 months 8 days	3 years 2 months 26 days	3 years 1 month 24 days
Weighted-average remaining years in lease term-operating leases	2 years 9 months 14 days	3 years 9 months 10 days	3 years 3 months 29 days
Weighted-average discount rate-finance leases	6.27%	6.49%	5.68%
Weighted-average discount rate-operating leases	6.42%	6.73%	4.52%

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2025

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

4. PROPERTY AND EQUIPMENT

The costs and related accumulated depreciation and amortization of major classes of property are as follows (in thousands):


		December 31, 2025			December 25, 2024
Land		$	12,323		$	12,323
Buildings and improvements			153,049			152,410
Other property and equipment			77,802			91,352
Construction in progress			22,799			9,882
			265,973			265,967
Less: accumulated depreciation and amortization			(168,930)			(179,818)
		$	97,043		$	86,149

Depreciation and amortization expense was $16.0 million, $15.7 million and $15.2 million for the years ended December 31, 2025, December 25, 2024, and December 27, 2023, respectively.

Based on the Company’s review of its property and equipment assets for impairment, the Company did not record any non-cash impairment charges for the year ended December 31, 2025 and recorded $0.1 million and $1.5 million for the years ended December 25, 2024 and December 27, 2023, respectively. See “Impairment of Property and Equipment and ROU Assets” in Note 2 “Summary of Significant Accounting Policies” for additional information.

SEGMENT REPORTING

12 Months Ended

Dec. 31, 2025

SEGMENT REPORTING

SEGMENT REPORTING

17. SEGMENT REPORTING

Operating segments are defined as components of a company that engage in business activities from which it may earn revenue and incur expenses, and for which separate financial information is available and is regularly reviewed by the chief operating decision maker ("CODM") to assess the performance of the individual segments and make decisions about company resources such as personnel and working capital to be allocated to the segments.

The Company derives revenue from three primary sources: (1) company-operated restaurant revenue, (2) franchise revenue, which is comprised primarily of franchise royalties and, to a lesser extent, franchise fees and sublease rental income, and (3) franchise advertising fee revenue. All significant revenues relate to retail sales of food and beverages through either company-operated or franchised restaurants.

The Company determined that it has one operating segment and one reportable segment which is reflected in the Company’s current organizational and management structure. The accounting policies of the segment are the same as those described in Note 2 “Summary of Significant Accounting Policies.”

The Company’s CODM is the Chief Executive Officer who manages the Company’s operations on a reportable segment basis. The Company’s CODM reviews its operations and financial performance at a consolidated level by comparing actual results to budgeted figures and prior year results. This approach allows the CODM to assess whether the Company’s operating segment is meeting its financial goals, identify trends and make more informed decisions about resource allocation and performance targets.

When evaluating the Company’s financial performance, the CODM regularly reviews total revenues, segment expenses and consolidated net income as reported on the Consolidated Statements of Operations as well as non-GAAP measures such as restaurant contribution margin and Adjusted EBITDA to allocate Company resources and assess the performance of the Company. Segment asset information is not used by the CODM to assess performance and allocate resources.

The table below is a summary of the segment net income, including significant segment expenses for the years ended December 31, 2025, December 25, 2024 and December 27, 2023 (in thousands):



	December 31, 2025		December 25, 2024		December 27, 2023
Total revenue	$	490,046	$	473,008	$	468,664
Less:
Food and paper costs		100,083		100,725		108,250
Labor and related expenses		127,258		127,179		127,244
General and administrative expenses		50,258		46,270		42,025
Franchise expenses		47,762		42,307		38,404
Occupancy expenses		32,551		30,792		31,318
Other operating expenses⁽¹⁾		73,835		68,488		69,753
Depreciation and amortization		15,966		15,717		15,235
Other segment expenses⁽²⁾		288		362		(3,357)
Total operating expenses		448,001		431,840		428,872
Income from operations		42,045		41,168		39,792

Interest expenses, net		4,470		5,899		4,811
Provision for income taxes		11,089		9,605		9,324
Income tax receivable agreement (income) expenses		-		(20)		103
Total segment net income	$	26,486	$	25,684	$	25,554

(1)

Other operating expenses are comprised of utilities, repairs and maintenance, advertising, credit card processing fees, delivery service provider fees, restaurant supplies and other restaurant operating costs.

(2)

Other segment expenses include loss (gain) on disposal of assets, gain on recovery of insurance proceeds, property, equipment and expenses, (gain) loss on disposition of restaurants and impairment and closed-store reserves.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

OTHER NONCURRENT LIABILITIES

12 Months Ended

Dec. 31, 2025

OTHER NONCURRENT LIABILITIES

OTHER NONCURRENT LIABILITIES

9. OTHER NONCURRENT LIABILITIES

Other noncurrent liabilities consist of the following (in thousands):


		December 31, 2025			December 25, 2024
Deferred franchise and development fees		$	5,607		$	6,191
Other			26			27
Total other noncurrent liabilities		$	5,633		$	6,218

TRADEMARKS AND OTHER INTANGIBLE ASSETS - Schedule of Domestic Trademarks (Details) - Trademarks - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 25, 2024
Indefinite-lived Intangible Assets [Line Items]
Cost	$ 120,700	$ 120,700
Accumulated impairment charges	(58,812)	(58,812)
Trademarks, net	$ 61,888	$ 61,888

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

PROPERTY AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
PROPERTY AND EQUIPMENT
Depreciation and amortization	$ 15,966	$ 15,717	$ 15,235
Impairment of property and equipment	$ 0	$ 100	$ 1,500

- Definition

The aggregate expense recognized in the current period that allocates the cost of tangible assets, intangible assets, or depleting assets to periods that benefit from use of the assets.

+ References + Details

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 2025

PREPAID EXPENSES AND OTHER CURRENT ASSETS

Schedule of prepaid expenses and other current assets

Prepaid expenses and other current assets consist of the following (in thousands):


		December 31, 2025			December 25, 2024
Prepaid insurance		$	2,634		$	2,574
Prepaid service fees			2,953			2,255
Other current assets			782			680
Total prepaid expenses and other current assets		$	6,369		$	5,509

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restaurant Revenue and Advertising Costs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2025 USD ($) restaurant	Dec. 25, 2024 USD ($)	Dec. 27, 2023 USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Promotional allowances amount	$ 9,800	$ 6,300	$ 8,700
Loyalty Rewards Program, Expiration Period For Inactivity	1 year
Accrued loyalty rewards program liability	$ 1,100	800
Loyalty Rewards Program, Expected Loyalty Points Redemption Period	1 year
Number of franchised restaurants committed to open \| restaurant	88
Advertising expense	$ 16,900	16,100	16,200
Accrued advertising	2,438	1,194
Accrued advertising obligated to spend in future	$ 2,400
Initial lease term	20 years
Minimum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	10 years
Percentage of monthly franchise fee	4.00%
Maximum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	20 years
Percentage of monthly franchise fee	5.00%
Hardware Services
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Unsatisfied performance obligations	$ 0
Franchise Rights
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Renewal period	20 years
Franchise agreement term	20 years
General and Administrative Expense
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Preopening costs	$ 100	100	100
Franchised
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Advertising fees	$ 31,800	$ 31,200	$ 29,200

INCOME TAXES - Schedule of Income tax reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
Tax reconciliation amount
US Federal Statutory Tax Rate	$ 7,891	$ 7,411	$ 7,324
State and Local Income Taxes, Net of Federal Income Tax Effect	2,580	2,157	2,185
WOTC Credit	(164)	(163)	(295)
Nontaxable or Nondeductible Items
Stock Option Exercise	62	32	33
Nondeductible Stock Option Expense	27	54	166
162(m) nondeductible executive compensation	614	6	194
Other	13	142	84
Deferred tax liability true up	66		(381)
Other		(34)	14
Total income tax expense (benefit)	$ 11,089	$ 9,605	$ 9,324
Tax Jurisdiction of Domicile [Extensible Enumeration]	country:US	country:US	country:US
Tax reconciliation percentage
US Federal Statutory Tax Rate	21.00%	21.00%	21.00%
State and Local Income Taxes, Net of Federal Income Tax Effect	6.90%	6.10%	6.30%
WOTC Credit	(0.40%)	(0.50%)	(0.70%)
Nontaxable or Nondeductible Items
Stock Option Exercise	0.20%	0.10%	0.10%
Nondeductible Stock Option Expense		0.20%	0.50%
162(m)	1.60%		0.60%
Other		0.40%
Deferred tax liability true up	0.20%		(1.10%)
Other		(0.10%)	0.00%
Total	29.50%	27.20%	26.70%
Effective Income Tax Rate Reconciliation, State and Local Jurisdiction, Contribution Greater than 50 Percent, Tax Effect [Extensible Enumeration]	CALIFORNIA	CALIFORNIA	CALIFORNIA

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
Cash flows from operating activities:
Net income	$ 26,486	$ 25,684	$ 25,554
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	15,966	15,717	15,235
Stock-based compensation expense	5,396	3,931	2,964
Income tax receivable agreement (income) expense		(20)	103
Fire insurance proceeds for expenses paid and lost profit			327
Loss (gain) on disposition of restaurants		7	(5,034)
Loss on disposal of assets	277	221	192
Gain on recovery of insurance proceeds, property, equipment and expenses, net		(41)	(247)
Impairment of property and equipment and ROU assets		123	1,536
Amortization of deferred financing costs	195	197	201
Deferred income taxes, net	1,403	(2,857)	906
Changes in operating assets and liabilities:
Accounts and other receivables	(1,739)	677	(216)
Inventories	128	(27)	531
Prepaid expenses and other current assets	(860)	125	(1,972)
Income taxes receivable/ payable	(45)	1,695	838
Operating lease assets	19,989	19,133	19,040
Other assets	(1,080)	(232)	(309)
Accounts payable	4,808	(544)	(3,965)
Accrued salaries and vacation	(2,856)	4,594	459
Accrued insurance	569	(414)	711
Payment related to tax receivable agreement		(399)	(350)
Operating lease liabilities	(19,287)	(19,105)	(19,120)
Other accrued expenses and liabilities	(1,274)	(1,684)	3,304
Net cash flows provided by operating activities	48,076	46,781	40,688
Cash flows from investing activities:
Proceeds from disposition of restaurants		100	7,722
Proceeds from fire insurance for property and equipment		41	163
Purchase of property and equipment	(22,635)	(19,081)	(21,332)
Net cash flows used in investing activities	(22,635)	(18,940)	(13,447)
Cash flows from financing activities:
Proceeds from borrowings on revolver and swingline loans	9,000	14,000	39,000
Payments on revolver and swingline loan	(29,000)	(27,000)	(21,000)
Minimum tax withholdings related to net share settlements	(737)	(440)	(243)
Proceeds from issuance of common stock upon exercise of stock options, net of expenses	1,105	1,556	1,171
Payment of obligations under finance leases	(223)	(207)	(158)
Repurchases of common stock	(1,842)	(20,554)	(59,216)
Net cash flows used in financing activities	(21,697)	(32,645)	(40,446)
Increase/(Decrease) in cash and cash equivalents	3,744	(4,804)	(13,205)
Cash and cash equivalents, beginning of period	2,484	7,288	20,493
Cash and cash equivalents, end of period	6,228	2,484	7,288
Supplemental cash flow information
Cash paid during the period for interest	4,381	5,890	4,819
Cash paid during the period for income taxes	9,730	10,351	7,721
Unpaid purchases of property and equipment	$ 8,384	3,969	$ 5,098
Unpaid repurchases of common stock and excise tax		$ 204

TRADEMARKS AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2025

TRADEMARKS AND OTHER INTANGIBLE ASSETS

Schedule of domestic trademarks

Domestic trademarks consist of the following (in thousands):


		December 31, 2025			December 25, 2024
Cost		$	120,700		$	120,700
Accumulated impairment charges			(58,812)			(58,812)
Trademarks, net		$	61,888		$	61,888

Cybersecurity Risk Management and Strategy Disclosure

12 Months Ended

Dec. 31, 2025

Cybersecurity Risk Management, Strategy, and Governance [Line Items]

Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

The Company has multi-layer processes to assess, identify and manage material risks from cybersecurity threats. These processes are integrated into the Company’s enterprise risk management as part of its overall risk management strategy.

A cross-functional team of senior leadership assesses potential material risks to the business and the Company’s ability to meet strategic priorities, including risks from cybersecurity threats. The Company’s senior leadership receives updates from relevant functional heads or other subject matter specialists on these potential material risks as well as the processes or other steps being taken to manage or mitigate the risks. The team includes senior leaders in areas of importance to Company priorities, including the Company’s Chief Privacy Officer, who is also our Senior Vice President of Information Technology and the Chief Legal Officer. The Company’s senior leadership assesses and prioritizes risk based on impact to shareholders, operations, and strategic priorities, among other factors.

The Chief Privacy Officer oversees the Company’s information security program and is responsible for the day-to-day information risk management activities through the internal information security team, and outside resources. The SVP, Chief Information Officer, who has over 30 years of IT and IT security experience, 22 of which are at the Company, employs a team of information technology experts, including a dedicated Cyber Security Analyst. The SVP, Chief Information Officer and the Cyber Security Analyst are further supported by other members of the IT department.

The Company’s processes to assess, identify and manage material risks from cybersecurity threats include, but are not limited to, the following:

●

The SVP, Chief Information Officer, dedicated Cyber Security Analyst, and other key members of the information technology team actively monitor threats to the information technology environment. They work with a third party to provide additional 24/7 monitoring of cyber threats. These internal and external cybersecurity teams are empowered to contain network access through various application controls. Structural protections are also in place to mitigate risks of end point failures, and provide for continuity of operations.

●

The Company uses various systems to manage threats, for example, firewall protections, anti-virus protections, vulnerability scans, among others. Such systems are regularly reviewed for adequacy and potential enhancements.

●

The Company employs an information security and training program for our employees, including annual mandatory computer-based training, regular internal communications, and ongoing end-user testing throughout the year to measure the effectiveness of our information security program.

●

The Company engages external third parties to advise on emerging threats to stay current and strengthen our security capabilities.

●

The Company performs penetration testing and other exercises within internal and external networks for potential vulnerabilities.

●

The Company additionally performs annual tabletop exercises with the information technology team pertaining to infrastructure and cyber security related events, to test the Company’s incident response and business continuity plans in the event of a cybersecurity incident.

●

Bi-annually the Company engages a third party to conduct an audit of the Company's cybersecurity systems and processes to test their adequacy and efficacy. The results are shared with senior leadership and the Audit Committee of the Board, and incorporated into strategic security plans.

●

The Company maintains cybersecurity insurance, which is assessed annually for the appropriateness of coverage levels and emerging trends.

The Company also has in place an Incident Response Plan that enables it to quickly categorize, respond, and escalate to senior leadership and the Audit Committee of the Board, real or potential cybersecurity incidents in a manner designed to mitigate overall business impact.

In connection with the Company’s review and approval for potential new vendors, the Company assesses the data types or Personally Identifiable Information that the vendor may maintain, store or access and reviews the adequacy of their cybersecurity procedures and legal protections. Legal counsel and the SVP, Chief Privacy Officer review the cyber and contractual protections and consider the overall risk profile considering the type of agreement, data involved, vendor, and jurisdiction, among other factors. Vendors deemed to have insufficient controls balancing the relevant criteria will not be approved.

The Board of Directors is kept apprised of material risks from cybersecurity threats through the Audit Committee. The Audit Committee is responsible for overseeing threats to the Company, including those involving cyber threats, and reviewing the Company’s protocols and procedures to mitigate those threats. On a quarterly basis, the SVP, Chief Privacy Officer, presents to the Audit Committee on the Company’s cybersecurity compliance and risk management practices. These presentations address, among other things, the results of audits and reviews of our security information systems and other cybersecurity measures, the current threat environment and cybersecurity trends and best practices. As applicable, these quarterly presentations also include reports of cybersecurity incidents affecting our information systems along with updates on the status of prior cybersecurity incidents and applicable remediation efforts. The Audit Committee discusses the adequacy and efficacy of the controls and shares the information with the Board as part of its risk oversight function. Outside of quarterly presentations, the Audit Committee is informed of incidents that in senior leadership’s discretion require more immediate Audit Committee attention.

To date, the Company has not, to its knowledge, experienced any cybersecurity threats or previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect the Company, including its business strategy, results of operations, or financial condition. In the last three years, the Company has not experienced any material cybersecurity incidents and we have not incurred material expenses from cybersecurity incidents (including penalties and settlements, of which there were none). However, we can give no assurance that we have detected or protected against all cybersecurity incidents or cybersecurity threats. Please refer to “Item 1A, Risk Factors— Risks Related to Information Technology and Data Security” in this Annual Report for additional information about risks related to cybersecurity matters.

Cybersecurity Risk Management Processes Integrated [Flag]

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Cybersecurity Risk Management Processes Integrated [Text Block]

Cybersecurity Risk Management Third Party Engaged [Flag]

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Cybersecurity Risk Third Party Oversight and Identification Processes [Flag]

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Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag]

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Chief Privacy Officer, who is also our Senior Vice President of Information Technology and the Chief Legal Officer

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The SVP, Chief Information Officer, who has over 30 years of IT and IT security experience, 22 of which are at the Company, employs a team of information technology experts, including a dedicated Cyber Security Analyst. The SVP, Chief Information Officer and the Cyber Security Analyst are further supported by other members of the IT department.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loss (Gain) on Disposition of Restaurants (Details) $ in Thousands	12 Months Ended
	Dec. 25, 2024 USD ($) restaurant	Dec. 27, 2023 USD ($) restaurant
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Restaurants sold \| restaurant	1	18
Proceeds from disposition of restaurants	$ 100	$ 7,722
Loss on sale of restaurants	(7)	$ 5,034
Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss on sale of restaurants	$ (100)

SEGMENT REPORTING (Details) $ in Thousands	12 Months Ended
SEGMENT REPORTING (Details) $ in Thousands	Dec. 31, 2025 USD ($) segment	Dec. 25, 2024 USD ($)	Dec. 27, 2023 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| segment	1
Number of reportable segments \| segment	1
Segment expenses	Other segment expenses include loss (gain) on disposal of assets, gain on recovery of insurance proceeds, property, equipment and expenses, (gain) loss on disposition of restaurants and impairment and closed-store reserves.
Total revenue	$ 490,046	$ 473,008	$ 468,664
Less:
Food and paper costs	100,083	100,725	108,250
Labor and related expenses	127,258	127,179	127,244
General and administrative expenses	50,258	46,270	42,025
Franchise expenses	47,762	42,307	38,404
Depreciation and amortization	15,966	15,717	15,235
Total expenses	448,001	431,840	428,872
Income from operations	42,045	41,168	39,792
Interest expenses, net	4,470	5,899	4,811
Provision for income taxes	11,089	9,605	9,324
Income tax receivable agreement (income) expense		(20)	103
Total segment net income	26,486	25,684	25,554
Single reportable segment
Segment Reporting Information [Line Items]
Total revenue	490,046	473,008	468,664
Less:
Food and paper costs	100,083	100,725	108,250
Labor and related expenses	127,258	127,179	127,244
General and administrative expenses	50,258	46,270	42,025
Franchise expenses	47,762	42,307	38,404
Occupancy expenses	32,551	30,792	31,318
Other operating expenses	73,835	68,488	69,753
Depreciation and amortization	15,966	15,717	15,235
Other segment expenses	288	362	(3,357)
Total expenses	448,001	431,840	428,872
Income from operations	42,045	41,168	39,792
Interest expenses, net	4,470	5,899	4,811
Provision for income taxes	11,089	9,605	9,324
Income tax receivable agreement (income) expense		(20)	103
Total segment net income	$ 26,486	$ 25,684	$ 25,554

LONG-TERM DEBT (Details) $ in Thousands		12 Months Ended
LONG-TERM DEBT (Details) $ in Thousands	Jul. 27, 2022 USD ($)	Dec. 31, 2025 USD ($)	Dec. 25, 2024 USD ($)	Dec. 27, 2023 USD ($)
DESCRIPTION OF BUSINESS
Revolving line of credit		$ 51,000	$ 71,000
Repayments of Lines of Credit		$ 29,000	27,000	$ 21,000
2022 Credit Agreement \| One Month SOFR \| Minimum
DESCRIPTION OF BUSINESS
Debt instrument basis percentage		1.25%
2022 Credit Agreement \| One Month SOFR \| Maximum
DESCRIPTION OF BUSINESS
Debt instrument basis percentage		2.25%
2022 Credit Agreement \| Base Rate \| Minimum
DESCRIPTION OF BUSINESS
Debt instrument basis percentage		0.25%
2022 Credit Agreement \| Base Rate \| Maximum
DESCRIPTION OF BUSINESS
Debt instrument basis percentage		1.25%
Revolving Credit Facility \| 2022 Credit Agreement
DESCRIPTION OF BUSINESS
Interest expense		$ 3,900	$ 5,400	$ 4,400
Maximum borrowing capacity	$ 150,000
Senior secured revolving facility term	5 years
Debt Instrument, Restrictive Covenants, Maximum Annual Repurchase or Redemption of Qualified Entity Interests	$ 1,000
Debt Instrument, Restrictive Covenants, Maximum Annual Redemption, Repurchase, Acquired Equity Interests	500
Debt Instrument, Restrictive Covenants, Maximum Annual Payment For Stock Option Plans, Employment Agreements and Incentive Plans	2,500
Debt Instrument, Restrictive Covenants, Maximum Annual Payment For Other Restricted Payments	$ 5,000
Debt Instrument, Covenant Description, Maximum Leverage Ratio	4.25
Debt instrument, interest rate at period end		5.30%	5.70%
Revolving line of credit		$ 51,000	$ 71,000
Amount of borrowings available		88,700
Proceeds from lines of credit		9,000	14,000
Repayments of long-term lines of credit			$ 27,000
Repayments of Lines of Credit		29,000
Principal payments prior to maturity		$ 0
Revolving Credit Facility \| 2022 Credit Agreement \| Minimum
DESCRIPTION OF BUSINESS
Debt instrument, interest rate during period		5.30%
Revolving Credit Facility \| 2022 Credit Agreement \| Maximum
DESCRIPTION OF BUSINESS
Debt instrument, interest rate during period		7.75%
Revolving Credit Facility \| 2022 Credit Agreement \| Federal Funds Rate
DESCRIPTION OF BUSINESS
Debt instrument basis percentage		0.50%
Revolving Credit Facility \| 2022 Credit Agreement \| One Month SOFR
DESCRIPTION OF BUSINESS
Debt instrument basis percentage		1.00%
Revolving Credit Facility \| 2022 and 2018 Credit Agreements \| Minimum
DESCRIPTION OF BUSINESS
Debt instrument, interest rate during period			5.70%
Revolving Credit Facility \| 2022 and 2018 Credit Agreements \| Maximum
DESCRIPTION OF BUSINESS
Debt instrument, interest rate during period			7.00%
Letter of Credit \| 2022 Credit Agreement
DESCRIPTION OF BUSINESS
Maximum borrowing capacity	$ 15,000
Letters of credit outstanding		$ 10,300	$ 10,300
Swing Line Loans \| 2022 Credit Agreement
DESCRIPTION OF BUSINESS
Maximum borrowing capacity	$ 15,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2025

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Liquidity

The Company’s principal liquidity and capital requirements are new restaurants, existing restaurant capital investments (remodels and maintenance), interest payments on its debt, lease obligations and working capital and general corporate needs. At December 31, 2025, the Company’s total debt was $51.0 million. The Company’s ability to make payments on its indebtedness and to fund planned capital expenditures depends on available cash and its ability to generate adequate cash flows in the future, which, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond the Company’s control. Based on current operations, the Company believes that its cash flow from operations, available cash of $6.2 million at December 31, 2025, and the outstanding borrowing availability under the 2022 Revolver (as defined in Note 7 “Long-Term Debt”) will be adequate to meet the Company’s liquidity needs for the next twelve months from the issuance of the consolidated financial statements.

Basis of Presentation

The Company uses a 52- or 53-week fiscal year ending on the last Wednesday of each calendar year. Fiscal 2025, 2024, and 2023 ended on December 31, 2025, December 25, 2024 and December 27, 2023, respectively. In a 52-week fiscal year, each quarter includes 13 weeks of operations. In a 53-week fiscal year, the first, second and third quarters each include 13 weeks of operations and the fourth quarter includes 14 weeks of operations. Approximately every five or six years a 53-week fiscal year occurs. Fiscal 2025 was a 53-week year. 53-week years may cause revenues, expenses, and other results of operations to be higher due to the additional week of operations.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Holdings and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and revenue and expenses during the periods reported. Actual results could materially differ from those estimates. The Company’s significant estimates include estimates for impairment of goodwill, intangible assets and property and equipment, insurance reserves, lease accounting matters, contingent liabilities and income tax valuation allowances.

Cash and Cash Equivalents

The Company considers all liquid instruments with an original maturity of three months or less at the date of purchase to be cash equivalents.

Concentration of Risk

Cash and cash equivalents are maintained at financial institutions and, at times, these balances may exceed federally-insured limits. The Company has never experienced any losses related to these balances.

The Company had one supplier for which amounts due at December 31, 2025 totaled 10.9% of the Company’s accounts payable. As of December 25, 2024, the Company had one supplier for which the amount due totaled 19.7% of the Company’s accounts payable. Purchases from the Company’s largest supplier totaled 21.1% of the Company’s purchases for fiscal 2025, 24.1% for fiscal 2024 and 26.6% for fiscal 2023 with no amounts payable at December 31, 2025 or December 25, 2024.

In fiscal 2025, 2024 and 2023, Company-operated and franchised restaurants in the greater Los Angeles area generated, in the aggregate, approximately 71.9%, 72.0%, and 71.3%, respectively, of total revenue. One franchisee accounted for 28.1% of total accounts receivable as of December 31, 2025, and one franchisee accounted for 28.4% of total accounts receivable as of December 25, 2024.

Management believes the loss of the significant supplier or franchisee could have a material adverse effect on the Company’s consolidated results of operations and financial condition.

Accounts and Other Receivables, Net

Accounts and other receivables consist primarily of royalties, advertising and sublease rent and related amounts receivable from franchisees. Such receivables are due on a monthly basis, which may differ from the Company’s fiscal month-end dates. Accounts and other receivables also include credit/debit card receivables. The need for an allowance for credit losses is reviewed on a specific identification basis and takes into consideration past due balances and the financial strength of the obligor.

Inventories

Inventories consist principally of food, beverages, packaging and supplies and are valued at the lower of average cost or net realizable value.

Property and Equipment, Net

Property and equipment are recorded at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures for reimbursements and improvements that significantly add to the productivity capacity or extend the useful life are capitalized, while expenditures for maintenance and repairs are expensed as incurred. Leasehold improvements and property held under finance leases are amortized over the shorter of their estimated useful lives or the remaining lease terms. For leases with renewal periods at the Company’s option, the Company generally

uses the original lease term, excluding the option periods, to determine estimated useful lives; if failure to exercise a renewal option imposes an economic penalty on the Company, such that management determines at the inception of the lease that renewal is reasonably assured, the Company may include the renewal option period in the determination of appropriate estimated useful lives.

The estimated useful service lives are as follows:


Buildings		20 years
Land improvements		3—30 years
Building improvements		3—10 years
Restaurant equipment		3—10 years
Other equipment		2—10 years
Property/equipment held under finance leases		Shorter of useful life or lease term
Leasehold improvements		Shorter of useful life or lease term

The Company capitalizes certain directly attributable internal costs in conjunction with the acquisition, development and construction of future restaurants. The Company also capitalizes certain directly attributable costs, including interest, in conjunction with constructing new restaurants. These costs are included in property and amortized over the shorter of the life of the related buildings and leasehold improvements or the lease term. Costs related to abandoned sites and other site selection costs that cannot be identified with specific restaurants are charged to general and administrative expenses in the accompanying consolidated statements of income, and there was $0.1 million for the year ended December 31, 2025, none for the year ended December 25, 2024, and $0.2 million for the year ended December 27, 2023. The Company capitalized internal costs related to site selection and construction activities of $0.6 million, $0.6 million and $1.8 million for the years ended December 31, 2025, December 25, 2024 and December 27, 2023, respectively.

Impairment of Property and Equipment and ROU Assets

The Company reviews its property and equipment and right-of-use assets (“ROU assets”) for impairment on a restaurant-by-restaurant basis whenever events or changes in circumstances indicate that the carrying value of certain property and equipment and ROU assets may not be recoverable. The Company considers a triggering event, related to property and equipment assets or ROU assets in a net asset position, to have occurred related to a specific restaurant if the restaurant’s Average Unit Volume (“AUV”) for the last twelve months are less than a minimum threshold or if consistent levels of undiscounted cash flows for the remaining lease period are less than the carrying value of the restaurant’s assets. Additionally, the Company considers a triggering event, related to ROU assets, to have occurred related to a specific lease if the location has been closed or subleased and future estimated sublease income is less than current lease payments. As of December 31, 2025 and December 25, 2024, ROU assets related to closed or subleased restaurant locations totaled $28.9 million and $39.1 million, respectively. If the Company concludes that the carrying value of certain property and equipment and ROU assets will not be recovered based on expected undiscounted future cash flows, an impairment loss is recorded to reduce the property and equipment or ROU assets to their estimated fair value. The fair value is measured on a nonrecurring basis using unobservable (Level 3) inputs. There is uncertainty in the projected undiscounted future cash flows used in the Company’s impairment review analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods, and such charges could be material. The Company determined that triggering events occurred for certain stores during the year ended December 31, 2025 that required an impairment review of the Company’s property and equipment and ROU assets. Based on the results of this analysis, the Company did not record impairment charges for the year ended December 31, 2025.

In fiscal 2024, the Company recorded non-cash impairment charges of $0.1 million primarily related to the property and equipment assets of two restaurants in Nevada. In fiscal 2023, the Company recorded a non-cash impairment charge of $1.5 million primarily related to the carrying value of the ROU assets of one restaurant in California and the property and equipment assets of one restaurant in Nevada. Given the inherent uncertainty in projecting results for newer restaurants in newer markets, the Company is monitoring the recoverability of the carrying value of the assets of several

restaurants on an ongoing basis. For these restaurants, if expected performance is not realized, an impairment charge may be recognized in future periods, and such charge could be material.

Closed-Store Reserves

When a restaurant is closed, the Company will evaluate the ROU asset for impairment, based on anticipated sublease recoveries. The remaining value of the ROU asset is amortized on a straight-line basis, with the expense recognized in closed-store reserves expense. Additionally, any property tax and common area maintenance (“CAM”) payments relating to closed restaurants are also included within closed-store reserves expense.

During fiscal 2025, 2024 and 2023, the Company recognized less than $0.1 million, $0.1 million and $0.2 million, respectively, of closed-store reserves expense related to the amortization of ROU assets, property taxes and CAM payments for its closed locations.

Goodwill and Indefinite-Lived Intangible Assets

The Company’s indefinite-lived intangible assets consist of trademarks. Goodwill represents the excess of cost over fair value of net identified assets acquired in business combinations accounted for under the purchase method. The Company does not amortize its goodwill and indefinite-lived intangible assets. Goodwill resulted from the acquisition of certain franchise locations.

Upon the sale or refranchising of a restaurant, the Company evaluates whether there is a decrement of goodwill. The amount of goodwill included in the cost basis of the asset sold is determined based on the relative fair value of the portion of the reporting unit disposed of compared to the fair value of the reporting unit retained. The Company reports as one reporting unit. The fair value of the portion of the reporting unit disposed of in a refranchising is determined by reference to the discounted value of the future cash flows expected to be generated by the restaurant and retained by the franchisee, which includes a deduction for the anticipated, future royalties the franchisee will pay the Company associated with the franchise agreement entered into simultaneously with the refranchising transition. The fair value of the reporting unit retained is based on the price a willing buyer would pay for the reporting unit and includes the value of franchise agreements. As such, the fair value of the reporting unit retained can include expected cash flows from future royalties from those restaurants currently being refranchised, future royalties from existing franchise businesses and company restaurant operations. The Company did not record any decrement to goodwill related to the disposition of restaurants in fiscal 2025, 2024 or 2023.

The Company performs an annual impairment test for goodwill during the fourth fiscal quarter of each year, or more frequently if impairment indicators arise.

The Company reviews goodwill for impairment utilizing either a qualitative assessment or a fair value test by comparing the fair value of a reporting unit with its carrying amount. If the Company decides that it is appropriate to perform a qualitative assessment and concludes that the fair value of a reporting unit more likely than not exceeds its carrying value, no further evaluation is necessary. If the Company performs the fair value test, the Company will compare the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of a reporting unit exceeds its fair value, the Company will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit.

The Company performs an annual impairment test for indefinite-lived intangible assets during the fourth fiscal quarter of each year, or more frequently if impairment indicators arise. An impairment test consists of either a qualitative assessment or a comparison of the fair value of an intangible asset with its carrying amount. The excess of the carrying amount of an intangible asset over its fair value is recognized as an impairment loss.

The assumptions used in the estimate of fair value are generally consistent with the past performance of the Company’s reporting segment and are also consistent with the projections and assumptions that are used in current operating plans. These assumptions are subject to change as a result of changing economic and competitive conditions.

The Company determined that there were no indicators of potential impairment of its goodwill and indefinite-lived intangible assets during fiscal 2025. Accordingly, the Company did not record any impairment to its goodwill or indefinite-lived intangible assets during the year ended December 31, 2025, December 25, 2024 and December 27, 2023.

Deferred Financing Costs

Deferred financing costs are capitalized and amortized over the period of the loan on a straight-line basis. Included in other assets are deferred financing costs (net of accumulated amortization), related to the Company’s revolving credit facility, of $0.3 million and $0.5 million as of December 31, 2025 and December 25, 2024, respectively. Amortization expense for deferred financing costs was approximately $0.2 million for all of the years ended December 31, 2025, December 25, 2024, and December 27, 2023, and is reflected as a component of interest expense in the accompanying consolidated statements of income.

Insurance Reserves

The Company is responsible for workers’ compensation, general and health insurance claims up to a specified aggregate stop loss amount. The Company maintains a reserve for estimated claims both reported and incurred but not reported, based on historical claims experience and other assumptions. At December 31, 2025 and December 25, 2024, the Company had accrued $12.0 million and $11.4 million, respectively, and such amounts are reflected as accrued insurance in the accompanying consolidated balance sheets. The expense for such reserves for the years ended December 31, 2025, December 25, 2024 and December 27, 2023, totaled $11.1 million, $9.9 million, and $9.2 million, respectively. These amounts are included in labor and related expenses and general and administrative expenses on the accompanying consolidated statements of income.

Included in accrued insurance is $10.3 million and $10.1 million of workers’ compensation reserves at December 31, 2025 and December 25, 2024, respectively. The Company utilizes an actuary to estimate its workers’ compensation reserves and significant assumptions in the estimate included loss development factors, expected loss rates, and weighting of methods.

Restaurant Revenue

Revenues from the operation of company-operated restaurants are recognized as food and beverage products are delivered to customers and payment is tendered at the time of sale. The Company presents revenue net of sales-related taxes and promotional allowances. Promotional allowances amounted to approximately $9.8 million, $6.3 million and $8.7 million during the years ended December 31, 2025, December 25, 2024 and December 27, 2023, respectively.

The Company offers a loyalty rewards program, which awards a customer points for dollars spent. Customers earn points for each dollar spent and points can be redeemed for multiple redemption options. If a customer does not earn or use points within a one-year period, their account is deactivated and all points expire. When a customer is part of the rewards program, the obligation to provide future discounts related to points earned is considered a separate performance obligation, to which a portion of the transaction price is allocated. The performance obligation related to loyalty points is deemed to have been satisfied, and the amount deferred in the balance sheet is recognized as revenue, when the points are transferred to a reward and redeemed, the reward or points have expired, or the likelihood of redemption is remote. A portion of the transaction price is allocated to loyalty points, if necessary, on a pro-rata basis, based on stand-alone selling price, as determined by menu pricing and loyalty points terms. As of December 31, 2025 and December 25, 2024, the revenue allocated to loyalty points that have not been redeemed was $1.1 million and $0.8 million, respectively, which is reflected in the Company’s accompanying consolidated balance sheets within other accrued expenses and current liabilities. The Company expects the loyalty points to be redeemed and recognized over a one-year period.

The Company sells gift cards to its customers in the restaurants and through selected third parties. The gift cards sold to customers have no stated expiration dates and are subject to actual and/or potential escheatment rights in several of the jurisdictions in which the Company operates. Furthermore, due to these escheatment rights, the Company does not recognize breakage related to the sale of gift cards due to the immateriality of the amount remaining after escheatment. The Company recognizes income from gift cards when redeemed by the customer. Unredeemed gift card balances are deferred and recorded as other accrued expenses and current liabilities on the accompanying consolidated balance sheets.

Franchise Revenue

Franchise revenue consists of franchise royalties, initial and renewal franchise fees, license fees due from franchisees, sublease income, IT support services and IT pass through fees related to IT hardware or software. Rental income for subleases to franchisees are outside of the scope of the revenue standard and are within the scope of lease guidance. Franchise royalties are based upon a percentage of net sales of the franchisee and are recorded as income as such sales are earned by the franchisees.

For franchise and development agreement fees, the initial franchise services, or exclusivity of the development agreements, are not distinct from the continuing rights or services offered during the term of the franchise agreement and are, therefore, treated as a single performance obligation. As such, initial franchise and development fees received, and subsequent renewal fees, are recognized over the franchise or renewal term, which is typically 20 years. As of December 31, 2025, the Company had executed development agreements that represent commitments to open 88 franchised restaurants at various dates through 2035.

This revenue stream is made up of the following performance obligations:

●

Franchise License – inclusive of advertising services, development agreements, training, access to restaurant development plans and help desk services;

●

Discounted renewal option; and

●

Hardware services.

The Company satisfies the performance obligation related to the franchise license over the term of the franchise agreement, which is typically 20 years. Payment for the franchise license consists of three components, a fixed-fee related to the franchise/development agreement, a sales-based royalty fee and a sales-based advertising fee. The fixed fee, as determined by the signed development and/or franchise agreement, is due at the time the development agreement is entered into, and/or when the franchise agreement is signed, and does not include a finance component.

The sales-based royalty fee and sales-based advertising fee are considered variable consideration and are recognized as revenue as such sales are earned by the franchisees. Both sales-based fees qualify under the royalty constraint exception, and do not require an estimate of future transaction price. Additionally, the Company is utilizing the practical expedient available under ASC Topic 606, “Revenue from Contracts with Customers” (“Topic 606”) regarding disclosure of the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied for sales-based royalties.

In certain franchise agreements, the Company offers a discounted renewal to incentivize future renewals after the end of the initial franchise term. As this is considered a separate performance obligation, the Company allocated a portion of the initial franchise fee to this discounted renewal, on a pro-rata basis, assuming a 20 year renewal. This performance obligation is satisfied over the renewal term, which is typically 10 or 20 years, while payment is fixed and due at the time the renewal is signed.

The Company purchases hardware, such as scanners, printers, cash registers, kiosks and tablets, from third-party vendors, which it then sells to franchisees. As the Company is considered the principal in this relationship, payment received for the hardware is considered revenue, and is received upon transfer of the goods from the Company to the

franchisee. As of December 31, 2025, there were no performance obligations, related to hardware services that were unsatisfied or partially satisfied.

Franchise Advertising Fee Revenue

The Company presents advertising contributions received from franchisees as franchise advertising fee revenue and records all expenses of the advertising fund within franchise expenses.

Advertising Costs

Advertising expense is recorded as the obligation to contribute to the advertising fund and is accrued, generally when the associated revenue is recognized. Advertising expense, which is a component of occupancy and other operating expenses, was $16.9 million, $16.1 million and $16.2 million for the years ended December 31, 2025, December 25, 2024 and December 27, 2023, respectively. In addition, there was $31.8 million, $31.2 million and $29.2 million for the years ended December 31, 2025, December 25, 2024 and December 27, 2023, respectively, funded by the franchisees’ advertising fees.

Franchisees pay a monthly fee to the Company that ranges from 4% to 5% of their restaurants’ net sales as reimbursement for advertising, public relations and promotional services the Company provides, which is included within franchise advertising fee revenue. Fees received in advance of provided services are included in other accrued expenses and current liabilities and were $2.4 million and $1.2 million at December 31, 2025 and December 25, 2024, respectively. Company-operated restaurants contribute to the advertising fund on the same basis as franchised restaurants. At December 31, 2025, the Company was obligated to spend $2.4 million more in future periods to comply with this requirement.

Production costs of commercials, programming and other marketing activities are charged to the advertising funds when the advertising is first used for its intended purpose. Total contributions and other marketing expenses are included in general and administrative expenses in the accompanying consolidated statements of income.

Preopening Costs

Preopening costs incurred in connection with the opening of new restaurants are expensed as incurred. For each of the years ended December 31, 2025, December 25, 2024, and December 27, 2023, preopening costs, which are included in general and administrative expenses on the accompanying consolidated statements of income were $0.1 million, $0.3 million, and $0.3 million.

Leases

The Company’s operations utilize property, facilities, equipment and vehicles. Buildings and facilities leased from others are primarily for restaurants and support facilities. Restaurants are operated under lease arrangements that generally provide for a fixed base rent and, in some instances, contingent rent based on a percentage of gross sales or net revenues more than a defined amount. Initial terms of land and restaurant building leases generally have terms of 20 years, exclusive of options to renew. ROU assets and operating and finance lease liabilities are recognized at the lease commencement date, which is the date the Company takes possession of the property. Operating and finance lease liabilities represent the present value of lease payments not yet paid. ROU assets represent the Company’s right to use an underlying asset and are based upon the operating and finance lease liabilities adjusted for prepayments or accrued lease payments, lease incentives, and impairment of ROU assets. To determine the present value of lease payments not yet paid, the Company estimates incremental borrowing rates corresponding to the lease term including reasonably certain renewal periods.

The Company’s leases generally have escalating rents over the term of the lease, and are recorded on a straight-line basis over the expected lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce the right-of-use asset related to the lease. These are amortized through the operating lease asset as reductions of expense over the lease term.

Operating and finance lease liabilities that are based on an index or rate are calculated using the prevailing index or rate at lease commencement. Subsequent escalations in the index or rate and contingent rental payments are recognized as variable lease expenses. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Leases of equipment primarily consist of restaurant equipment, computer systems and vehicles. The Company subleases facilities to certain franchisees and other non-related parties which are recorded on a straight-line basis.

Gain on Recovery of Insurance Proceeds, Lost Profits, Net and Gain on Recovery of Insurance Proceeds, Property, Equipment and Expenses

In fiscal 2023, the Company incurred costs directly related to a fire of less than $0.1 million. In fiscal 2023, the Company recognized gains of $0.2 million, related to the reimbursement of property and equipment and expenses incurred and $0.3 million related to the reimbursement of lost profits and in fiscal 2024, the Company recognized gains of less than $0.1 million related to the reimbursement of property and equipment and expenses. The gain on recovery of insurance proceeds and reimbursement of lost profits, net of the related costs, is included in the accompanying consolidated statements of income, for the year ended December 27, 2023, as a reduction of Company restaurant expenses. The Company received from the insurance company cash of $0.5 million, net of the insurance deductible, during fiscal 2023.

Loss (Gain) on Disposition of Restaurants

The Company did not sell any restaurants to its franchisees during fiscal 2025. During fiscal 2024, the Company completed the sale of one company-operated restaurant within California to an existing franchisee due to an expiring lease term on April 30, 2024. During fiscal 2023, the Company completed the sale of 18 company-operated restaurants within California, Utah and Texas to existing franchisees.

The Company determined that these restaurant dispositions represented multiple element arrangements, and as a result, the cash consideration received was allocated to the separate elements based on their relative standalone selling price. Cash proceeds included upfront consideration for the sale of the restaurants and franchise fees, as well as future cash consideration for royalties. The cash consideration per restaurant related to franchise fees is consistent with the amounts stated in the related franchise agreements, which are charged for separate standalone arrangements. The Company initially defers and subsequently recognizes the franchise fees over the term of the franchise agreement. Future royalty income is also recognized in revenue as earned. During 2024, the sale resulted in cash proceeds of $0.1 million and a net loss on sale of restaurant of less than $0.1 million. During 2023, these sales resulted in cash proceeds of $7.7 million and a net gain on sale of restaurant of $5.0 million. Since the date of sale, these restaurants are now included in the total number of franchised El Pollo Loco restaurants.

Derivative Financial Instruments

The Company used an interest rate swap, a derivative instrument, to hedge interest rate risk and not for trading purposes. The derivative contract was entered into with a financial institution. In connection with the Company’s entry into the 2022 Credit Agreement (as defined in Note 7 “Long-Term Debt”), it terminated the interest rate swap on July 28, 2022. The Company recorded the derivative instrument on its consolidated balance sheets at fair value. The derivative instrument qualified as a hedging instrument in a qualifying cash flow hedge relationship, and the gain or loss on the derivative instrument was reported as a component of Accumulated Other Comprehensive Income (“AOCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. For any derivative instruments not designated as hedging instruments, the gain or loss will be recognized in earnings immediately.

Income Taxes

The provision for income taxes, accrued income taxes payable and deferred income taxes is determined using the asset and liability method. Deferred tax assets and liabilities are determined based on temporary differences between the

financial carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. On a periodic basis, the Company assesses the probability that its net deferred tax assets, if any, will be recovered. If, after evaluating all of the positive and negative evidence, a conclusion is made that it is more likely than not that some portion or all of the net deferred tax assets will not be recovered, a valuation allowance is provided by charging to tax expense a reserve for the portion of deferred tax assets which are not expected to be realized.

The Company reviews its filing positions for all open tax years in all U.S. federal and state jurisdictions where it is required to file.

When there are uncertainties related to potential income tax benefits, in order to qualify for recognition, the position the Company takes has to have at least a “more likely than not” chance of being sustained (based on the position’s technical merits) upon challenge by the respective authorities. The term “more likely than not” means a likelihood of more than 50%. Otherwise, the Company may not recognize any of the potential tax benefit associated with the position. The Company recognizes a benefit for a tax position that meets the “more likely than not” criterion as the largest amount of tax benefit that is greater than 50% likely of being realized upon its effective resolution. Unrecognized tax benefits involve management’s judgment regarding the likelihood of the benefit being sustained. The final resolution of uncertain tax positions could result in adjustments to recorded amounts and may affect the Company’s results of operations, financial position and cash flows.

The Company’s policy is to recognize interest or penalties related to income tax matters in income tax expense. The Company had no accrual for interest or penalties at December 31, 2025 or December 25, 2024. During fiscal 2025, fiscal 2024 and fiscal 2023, there were no material unrecognized tax benefits. Management believes no significant change to the amount of unrecognized tax benefits will occur within the next twelve months.

On July 30, 2014, the Company entered into the income tax receivable agreement (the “TRA”), which calls for the Company to pay to its pre-IPO stockholders 85% of the savings in cash that the Company realizes in its income taxes as a result of utilizing its net operating losses (“NOLs”) and other tax attributes attributable to preceding periods. For the years ended December 25, 2024 and December 27, 2023 income tax receivable agreement (income) expense consisted of the amortization of interest expense and changes in estimates for actual tax returns filed, related to the Company total expected TRA payments. On May 29, 2024, the Company terminated most of the obligations under the TRA, with respect to any payments or obligations owed to the FS Equity Partners V, L.P. and FS Affiliates V, L.P. (together, the “Sellers”) thereunder in exchange for a payment to the Sellers of $0.4 million. As of December 31, 2025 and December 25, 2024, there were no remaining obligations owed on the Company’s consolidated balance sheets.

Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories:

●

Level 1: Quoted prices for identical instruments in active markets.

●

Level 2: Observable prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs or significant value drivers are observable.

●

Level 3: Unobservable inputs used when little or no market data is available.

Certain assets and liabilities are measured at fair value on a nonrecurring basis. In other words, they are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment).

For the year ended December 31, 2025, the Company did not record any non-cash impairment charges for property and equipment, which were measured at fair value on a nonrecurring basis. For the year ended December 25, 2024, the

Company recorded non-cash impairment charges of $0.1 million for certain property and equipment, which were measured at fair value on a nonrecurring basis.

The following non-financial assets were measured at fair value, on a nonrecurring basis, as of and for the year ended December 27, 2023 for which an impairment loss was recognized during the corresponding periods, as discussed above under "Impairment of Property and Equipment and ROU Assets" (in thousands):


	Total			Level 1			Level 2			Level 3			Impairment Losses
Certain property and equipment, net	$	—		$	—		$	—		$	—		$	1,497
Certain ROU assets, net	$	244		$	—		$	—		$	244		$	39

Fair Value of Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and certain accrued expenses approximate fair value due to their short-term maturities.

Stock-Based Compensation

Stock-based compensation expense is recognized using a fair-value based method for costs related to all share-based payments including stock options, restricted stock and performance-based stock units issued under the Company’s employee stock plans. The fair value of stock option awards is estimated on the date of grant using an option pricing model, which requires the input of subjective assumptions. The Company is required to use judgment in estimating the amount of stock-based awards that are expected to be forfeited. If actual forfeitures differ significantly from the original estimate, stock-based compensation expense and the results of operations could be affected. The cost is recognized on a straight-line basis over the period during which an employee is required to provide service, usually the vesting period. For performance-based stock units, the Company estimates the probability that performance conditions will be achieved.

Earnings per Share

Earnings per share (“EPS”) is calculated using the weighted average number of common shares outstanding during each period. Diluted EPS assumes the conversion, exercise or issuance of all potential common stock equivalents unless the effect is to reduce a loss or increase the income per share. For purposes of this calculation, options and restricted stock awards are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive. The shares used to compute basic and diluted net income per share represent the weighted-average common shares outstanding.

Recently Issued Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The Company has adopted this standard during the year ended December 31, 2025 on a retrospective basis. See Note 10, Income Taxes, below for the Company’s updated disclosure.

In November 2024, the FASB issued ASU No. 2024-03, “Income Statement Reporting Comprehensive Income/Expense Disaggregation Disclosures”. The ASU requires disaggregated disclosure of income statement expenses at interim and annual reporting periods. The ASU is effective for fiscal year beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The ASU can be adopted prospectively or retrospectively at the option of the Company. The Company is currently evaluating the impact of adopting this ASU on its disclosures.

In December 2025, the FASB issued ASU No. 2025-11, “Interim Reporting (Topic 270) Narrow-Scope Improvements”. The ASU clarifies interim disclosure requirements and the applicability of Topic 270. The amendments in this update result in a comprehensive list of interim disclosures that are required by GAAP. The ASU is effective for interim periods within annual periods beginning after December 15, 2027, with early adoption permitted. The ASU can be adopted either prospectively or retrospectively. The Company is currently evaluating the impact of adopting this ASU on its disclosures.

The Company reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the consolidated financial statements.

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2025

PROPERTY AND EQUIPMENT

Schedule of costs and related accumulated depreciation and amortization of major classes of property

The costs and related accumulated depreciation and amortization of major classes of property are as follows (in thousands):


		December 31, 2025			December 25, 2024
Land		$	12,323		$	12,323
Buildings and improvements			153,049			152,410
Other property and equipment			77,802			91,352
Construction in progress			22,799			9,882
			265,973			265,967
Less: accumulated depreciation and amortization			(168,930)			(179,818)
		$	97,043		$	86,149

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Gain on Recovery of Insurance Proceeds (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 25, 2024	Dec. 27, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Gain on recovery of insurance proceeds	$ 300	$ 327
Received from the insurance		500
Gain on recovery of insurance proceeds, property, equipment and expenses	41	247
Maximum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Gain on recovery of insurance proceeds, property, equipment and expenses	$ 100
Fire \| Maximum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Incurred costs		$ 100

PROPERTY AND EQUIPMENT - Schedule of Costs and Related Accumulated Depreciation and Amortization of Major Classes of Property (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 25, 2024
Property and Equipment, Net
Property and equipment, gross	$ 265,973	$ 265,967
Less: accumulated depreciation and amortization	(168,930)	(179,818)
Total property and equipment, net	97,043	86,149
Land
Property and Equipment, Net
Property and equipment, gross	12,323	12,323
Buildings and improvements
Property and Equipment, Net
Property and equipment, gross	153,049	152,410
Other property and equipment
Property and Equipment, Net
Property and equipment, gross	77,802	91,352
Construction in progress
Property and Equipment, Net
Property and equipment, gross	$ 22,799	$ 9,882

EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2025

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

11. EMPLOYEE BENEFIT PLANS

The Company sponsors a defined contribution employee benefit plan that permits its employees, subject to certain eligibility requirements, to contribute up to 25% of their qualified compensation to the plan. The Company matches 100% of the employees’ contributions of the first 3% of the employees’ annual qualified compensation, and 50% of the employees’ contributions of the next 2% of the employees’ annual qualified compensation. The Company’s matching contribution immediately fully vests. The Company’s contributions to the plan were $0.9 million for the year ended December 31, 2025 and $0.8 million for both the years ended December 25, 2024 and December 27, 2023.

EARNINGS PER SHARE- Schedule of Reconciliation of Basic and Diluted Share Counts (Details) - shares	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
EARNINGS PER SHARE
Weighted-average shares outstanding-basic (shares)	29,178,940	29,850,256	34,253,542
Dilutive effect of stock options and restricted shares (shares)	217,950	184,722	121,164
Weighted-average shares outstanding-diluted (shares)	29,396,890	30,034,978	34,374,706

COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2025 USD ($) agreement lease
Officers
COMMITMENTS AND CONTINGENCIES
Number of at-will employment agreements \| agreement	3
Property Lease Guarantee
COMMITMENTS AND CONTINGENCIES
Number of leases assigned to franchisees \| lease	3
Latest lease expiration year	2038
Contingent lease obligations, maximum exposure	$ 3.6
Contingent lease obligations, maximum exposure, if discounted at estimated pre-tax cost of debt	2.9
Chicken Acquisition Corp
COMMITMENTS AND CONTINGENCIES
Purchase commitments, estimated obligations	$ 26.2

INCOME TAXES - Schedule of Income Taxes Paid (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
INCOME TAXES
U.S. Federal	$ 5,955	$ 7,541	$ 6,174
State	9,730	10,351	7,721
California
INCOME TAXES
State	3,766	2,720	1,503
Other
INCOME TAXES
State	$ 9	$ 90	$ 44

OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2025

OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES

OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES

8. OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES

Other accrued expenses and current liabilities consist of the following (in thousands):


		December 31, 2025			December 25, 2024
Accrued sales and property taxes		$	6,408		$	5,349
Gift card liability			5,559			5,100
Loyalty rewards program liability			1,106			844
Accrued advertising			2,438			1,194
Accrued legal settlements and professional fees			902			463
Deferred franchise and development fees			546			539
Other			4,026			2,407
Total other accrued expenses and current liabilities		$	20,985		$	15,896

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Indefinite Lived Intangible Assets (Details) $ in Millions	12 Months Ended
	Dec. 31, 2025 USD ($) item	Dec. 25, 2024 USD ($)	Dec. 27, 2023 USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of reporting unit \| item	1
Goodwill decrement related to dispositions of restaurants	$ 0.0	$ 0.0	$ 0.0
Goodwill and intangible asset impairment	$ 0.0	$ 0.0	$ 0.0

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2025

STOCK-BASED COMPENSATION

Schedule of changes in Stock Options


						Weighted-Average		Aggregate
				Weighted-Average		Contractual Life		Intrinsic Value
		Shares		Exercise Price		Life (Years)		(in thousands)
Outstanding - December 27, 2023		843,320		$	10.13
Grants		578,473			10.53
Exercised		(163,696)			9.50
Forfeited, cancelled or expired		(159,777)			10.66
Outstanding – December 25, 2024		1,098,320		$	10.36
Grants		525,493			10.43
Exercised		(113,307)			9.75
Forfeited, cancelled or expired		(276,522)			10.28
Outstanding – December 31, 2025		1,233,984		$	10.46		7.17	$	435
Vested and expected to vest at December 31, 2025		1,223,897		$	10.46		7.15	$	433
Exercisable at December 31, 2025		444,364		$	10.70		4.32	$	268

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions


		December 31, 2025		December 25, 2024
Expected volatility		42.8	%	44.1	%
Risk-free interest rate		4.1	%	4.6	%
Expected term (years)		6.00		6.25
Expected dividends		—		—

Schedule of Changes in Restricted Shares

Changes in restricted shares for the years ended December 31, 2025 and December 25, 2024, are as follows:


				Weighted-Average
		Shares		Fair Value
Unvested shares at December 27, 2023		537,461		$	9.94
Granted		472,186		$	10.42
Released		(258,506)		$	9.86
Forfeited, cancelled, or expired		(84,301)		$	10.91
Unvested shares at December 25, 2024		666,840		$	10.19
Granted		408,348		$	10.42
Released		(286,914)		$	10.38
Forfeited and cancelled		(171,237)		$	10.31
Unvested shares at December 31, 2025		617,037		$	10.22

Schedule of performance-based shares

Changes in performance-based shares for the years ended December 31, 2025 and December 25 2024, are as follows:


				Weighted-Average
		Shares		Fair Value
Unvested shares at December 27, 2023		—		$	—
Granted		41,537		$	9.63
Released		—		$	—
Forfeited, cancelled, or expired		—		$	—
Unvested shares at December 25, 2024		41,537		$	9.63
Granted		161,229		$	10.42
Released		(28,973)		$	9.63
Forfeited and cancelled		(35,988)		$	10.42
Unvested shares at December 31, 2025		137,805		$	10.34

SEGMENT REPORTING (Tables)

12 Months Ended

Dec. 31, 2025

SEGMENT REPORTING

Schedule of segment (income) expenses

The table below is a summary of the segment net income, including significant segment expenses for the years ended December 31, 2025, December 25, 2024 and December 27, 2023 (in thousands):



	December 31, 2025		December 25, 2024		December 27, 2023
Total revenue	$	490,046	$	473,008	$	468,664
Less:
Food and paper costs		100,083		100,725		108,250
Labor and related expenses		127,258		127,179		127,244
General and administrative expenses		50,258		46,270		42,025
Franchise expenses		47,762		42,307		38,404
Occupancy expenses		32,551		30,792		31,318
Other operating expenses⁽¹⁾		73,835		68,488		69,753
Depreciation and amortization		15,966		15,717		15,235
Other segment expenses⁽²⁾		288		362		(3,357)
Total operating expenses		448,001		431,840		428,872
Income from operations		42,045		41,168		39,792

Interest expenses, net		4,470		5,899		4,811
Provision for income taxes		11,089		9,605		9,324
Income tax receivable agreement (income) expenses		-		(20)		103
Total segment net income	$	26,486	$	25,684	$	25,554

(1)

(2)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Liquidity and subsequent events (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 25, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Total amount of outstanding debt	$ 51,000
Cash available	$ 6,228	$ 2,484

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(22))
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-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
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-Name Accounting Standards Codification
-Section S99
-Paragraph 2
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-URI https://asc.fasb.org/1943274/2147477314/942-235-S99-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
-Section S50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-4

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
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-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-3

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 55
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482949/835-30-55-8

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(16))
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-URI https://asc.fasb.org/1943274/2147478546/942-210-S99-1

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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-Name Accounting Standards Codification
-Section 55
-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69B

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1D

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 944
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03(a)(16)(a)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478777/944-210-S99-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 4
-Subparagraph (b)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-4

+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2025

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Liquidity

Principles of Consolidation

Use of Estimates

Cash and Cash Equivalents

The Company considers all liquid instruments with an original maturity of three months or less at the date of purchase to be cash equivalents.

Concentration of Risk

Management believes the loss of the significant supplier or franchisee could have a material adverse effect on the Company’s consolidated results of operations and financial condition.

Accounts and Other Receivables, Net

Inventories

Inventories consist principally of food, beverages, packaging and supplies and are valued at the lower of average cost or net realizable value.

Property and Equipment, Net

The estimated useful service lives are as follows:


Buildings		20 years
Land improvements		3—30 years
Building improvements		3—10 years
Restaurant equipment		3—10 years
Other equipment		2—10 years
Property/equipment held under finance leases		Shorter of useful life or lease term
Leasehold improvements		Shorter of useful life or lease term

Impairment of Property and Equipment and ROU Assets

restaurants on an ongoing basis. For these restaurants, if expected performance is not realized, an impairment charge may be recognized in future periods, and such charge could be material.

Closed-Store Reserves

Goodwill and Indefinite-Lived Intangible Assets

The Company performs an annual impairment test for goodwill during the fourth fiscal quarter of each year, or more frequently if impairment indicators arise.

Deferred Financing Costs

Insurance Reserves

Restaurant Revenue

Franchise Revenue

This revenue stream is made up of the following performance obligations:

●

Franchise License – inclusive of advertising services, development agreements, training, access to restaurant development plans and help desk services;

●

Discounted renewal option; and

●

Hardware services.

franchisee. As of December 31, 2025, there were no performance obligations, related to hardware services that were unsatisfied or partially satisfied.

Franchise Advertising Fee Revenue

The Company presents advertising contributions received from franchisees as franchise advertising fee revenue and records all expenses of the advertising fund within franchise expenses.

Advertising Costs

Preopening Costs

Leases

Gain on Recovery of Insurance Proceeds, Lost Profits and Gain on Recovery of Insurance Proceeds, Property, Equipment and Expenses

Gain on Recovery of Insurance Proceeds, Lost Profits, Net and Gain on Recovery of Insurance Proceeds, Property, Equipment and Expenses

Loss (Gain) on Disposition of Restaurants

Loss (Gain) on Disposition of Restaurants

Derivative Financial Instruments

Income Taxes

The Company reviews its filing positions for all open tax years in all U.S. federal and state jurisdictions where it is required to file.

Fair Value Measurements

●

Level 1: Quoted prices for identical instruments in active markets.

●

Level 3: Unobservable inputs used when little or no market data is available.

Company recorded non-cash impairment charges of $0.1 million for certain property and equipment, which were measured at fair value on a nonrecurring basis.


	Total			Level 1			Level 2			Level 3			Impairment Losses
Certain property and equipment, net	$	—		$	—		$	—		$	—		$	1,497
Certain ROU assets, net	$	244		$	—		$	—		$	244		$	39

Fair Value of Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and certain accrued expenses approximate fair value due to their short-term maturities.

Stock Based Compensation

Stock-Based Compensation

Earnings per Share

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

STOCK-BASED COMPENSATION - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense, recognition period	2 years 3 months 18 days
Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unvested shares, beginning balance (shares)	666,840	537,461
Granted (shares)	408,348	472,186
Released (shares)	(286,914)	(258,506)
Forfeited and cancelled	(171,237)	(84,301)
Unvested shares, ending balance (shares)	617,037	666,840
Unvested shares Weighted-Average Fair Value, beginning balance (usd per share)	$ 10.19	$ 9.94
Granted, Weighted-Average Fair Value (usd per share)	10.42	10.42
Released, Weighted-Average Fair Value (usd per share)	10.38	9.86
Forfeited and cancelled, Weighted-Average Fair Value (usd per share)	10.31	10.91
Unvested shares Weighted-Average Fair Value, ending balance (usd per share)	$ 10.22	$ 10.19
Performance restricted stock units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unvested shares, beginning balance (shares)	41,537
Granted (shares)	161,229	41,537
Released (shares)	(28,973)
Forfeited and cancelled	(35,988)
Unvested shares, ending balance (shares)	137,805	41,537
Unvested shares Weighted-Average Fair Value, beginning balance (usd per share)	$ 9.63
Granted, Weighted-Average Fair Value (usd per share)	10.42	$ 9.63
Released, Weighted-Average Fair Value (usd per share)	9.63
Forfeited and cancelled, Weighted-Average Fair Value (usd per share)	10.42
Unvested shares Weighted-Average Fair Value, ending balance (usd per share)	$ 10.34	$ 9.63
Unrecognized compensation expense	$ 1.1
Unrecognized compensation expense, recognition period	2 years 18 days

SHAREHOLDER RIGHTS AGREEMENT

12 Months Ended

Dec. 31, 2025

SHAREHOLDER RIGHTS AGREEMENT

SHAREHOLDER RIGHTS AGREEMENT

16. SHAREHOLDER RIGHTS AGREEMENT

On August 8, 2023, the Board declared a dividend of one preferred share purchase right (a “Right”) for each share of common stock, par value $0.01 per share, of the Company (the “Common Shares”) outstanding on August 8, 2023 to the stockholders of record on that date. In connection with the distribution of the Rights, the Company entered into a Rights Agreement (the “Rights Agreement”), dated as of August 8, 2023, between the Company and Equiniti Trust Company, LLC, as rights agent. Each Right entitled the registered holder to purchase from the Company one one-thousandth of a

share of Series A Preferred Stock, par value $0.01 per share, of the Company (the “Preferred Shares”) at a price of $53.75 per one one-thousandth of a Preferred Share represented by a Right, subject to adjustment.

On August 4, 2024, the Board approved and entered into an Amendment to the Rights Agreement (together, the “Amended Rights Agreement”). Pursuant to the Amended Rights Agreement, the expiration date of the Rights was extended to May 30, 2025 11:59 p.m., Pacific Time, the date that the votes of the stockholders of the Company with respect to the Company’s 2025 annual meeting of stockholders were certified.

The Amended Rights Agreement expired and was terminated by its term on May 30, 2025.

REVENUE FROM CONTRACTS WITH CUSTOMERS - Change in Contract Liabilities (Details) - Franchise revenue - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024
Change in Contract with Customer, Liability [Roll Forward]
Loyalty rewards liability, beginning balance	$ 6,730	$ 6,997
Additional contract liability	573	358
Revenue recognized	(1,150)	(625)
Loyalty rewards liability, ending balance	$ 6,153	$ 6,730

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Risk (Details) - item	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
Supplier Concentration Risk \| Supplier One \| Accounts Payable
Concentration of Risk
Number Of Suppliers	1	1
Percentage of concentration	10.90%	19.70%
Supplier Concentration Risk \| Largest Supplier One \| Purchased
Concentration of Risk
Percentage of concentration	21.10%	24.10%	26.60%
Geographic Concentration Risk \| Revenue
Concentration of Risk
Percentage of concentration	100.00%	100.00%	100.00%
Franchised \| Accounts Receivable
Concentration of Risk
Number of Franchisees	1	1
Franchised \| Geographic Concentration Risk \| Accounts Receivable
Concentration of Risk
Percentage of concentration	28.10%	28.40%
Greater Los Angeles area market \| Geographic Concentration Risk \| Revenue
Concentration of Risk
Percentage of concentration	71.90%	72.00%	71.30%

STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	May 29, 2025	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share-based payment award, options, vested		444,364
Number of share available for grant (shares)		525,898
Stock-based compensation expense		$ 5,400	$ 3,900	$ 3,000
Common stock, options outstanding (shares)		1,233,984	1,098,320	843,320
Common stock, options unvested (shares)		789,620
Option vesting period			4 years
Options expiration period		10 years	10 years
Intrinsic value of options exercised		$ 200	$ 300	$ 900
Weighted average grant date fair value (usd per share)		$ 4.94	$ 5.28
Options to purchase common stock granted (shares)		525,493	578,473
Unrecognized compensation expense		$ 3,000
Unrecognized compensation expense, recognition period		2 years 3 months 18 days
Stock-based compensation expense		$ 5,396	$ 3,931	$ 2,964
Omnibus Equity Incentive Plan 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized number of common stock for issuance (shares)	4,500,000
Aggregate share limit	1,250,000
Exercise price equal to the fair market value of the common stock on the date of grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option vesting period		3 years
Options to purchase common stock granted (shares)		525,493	578,473
Premium Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, options outstanding (shares)		0
Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense		$ 4,300
Unrecognized compensation expense, recognition period		2 years 1 month 17 days
Restricted Shares \| Nonemployee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option vesting period		1 year	1 year
Restricted Shares \| Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option vesting period		3 years	4 years
Performance restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested restricted shares outstanding (shares)		137,805	41,537
Unrecognized compensation expense		$ 1,100
Unrecognized compensation expense, recognition period		2 years 18 days

LEASES (Details)	12 Months Ended
LEASES (Details)	Dec. 31, 2025 USD ($) item lease restaurant	Dec. 25, 2024 USD ($) restaurant	Dec. 27, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Initial lease term	20 years
Existence of residual value guarantee	false
Number of renewable options \| item	4
Renewal term	5 years
Lessee, Operating Lease, Existence of Option to Extend [true false]	true
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 17,467,000	$ 21,798,000	$ 21,502,000
Number of lease commencements	5
ROU assets increased due to new lease commencements	$ 6,200,000
Original impact of original lease classification	0	$ 0
Number of restaurants primarily responsible for impairment \| restaurant		1
Operating lease, impairment charges	$ 0	$ 0
California
Lessee, Lease, Description [Line Items]
Number of restaurants closed \| restaurant		1
California \| Maximum
Lessee, Lease, Description [Line Items]
Operating lease, impairment charges		$ 100,000
Operating Lease, Lease Not yet Commenced
Lessee, Lease, Description [Line Items]
Number of operating leases \| lease	0
Lease Not Yet Commenced \| Financing Lease, Lease Not yet Commenced
Lessee, Lease, Description [Line Items]
Number of finance leases \| lease	0
Equipment Leases
Lessee, Lease, Description [Line Items]
Number of finance leases \| lease	24
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 3,000	$ 1,294,000	$ 54,000
Property lease modification
Lessee, Lease, Description [Line Items]
Number of Restaurants with lease modification \| restaurant	19	28
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 11,300,000	$ 20,500,000
Facility Leases
Lessee, Lease, Description [Line Items]
Number of finance leases \| lease	1

LONG-TERM DEBT

12 Months Ended

Dec. 31, 2025

LONG-TERM DEBT.

LONG-TERM DEBT

7. LONG-TERM DEBT

On July 27, 2022, the Company refinanced pursuant to a credit agreement (the “2022 Credit Agreement”) among EPL, as borrower, the Company and Intermediate, as guarantors, Bank of America, N.A., as administrative agent, swingline lender, and letter of credit issuer, the lenders party thereto, and the other parties thereto, which provides for a $150.0 million five-year senior secured revolving credit facility (the “2022 Revolver”).

The 2022 Revolver includes a sub limit of $15.0 million for letters of credit and a sub limit of $15.0 million for swingline loans. The obligations under the 2022 Credit Agreement and related loan documents are guaranteed by Holdings and Intermediate. The obligations of Holdings, EPL and Intermediate under the 2022 Credit Agreement and related loan documents are secured by a first priority lien on substantially all of their respective assets subject to certain customary exceptions.

Under the 2022 Revolver, Holdings is restricted from making certain payments such as cash dividends, except that it may, inter alia, (i) pay up to $1.0 million per year to repurchase or redeem qualified equity interests of Holdings held by past or present officers, directors, or employees (or their estates) of the Company upon death, disability, or termination of employment, (ii) pay under its TRA, and (iii) so long as no default or event of default has occurred and is continuing, (a) make non-cash repurchases of equity interests in connection with the exercise of stock options by directors, officers and management, provided that those equity interests represent a portion of the consideration of the exercise price of those stock options, (b) pay up to $0.5 million in any 12 month consecutive period to redeem, repurchase or otherwise acquire equity interests of any subsidiary that is not a wholly-owned subsidiary from any holder of equity interest in such subsidiary, (c) pay up to $2.5 million per year pursuant to stock option plans, employment agreements, or incentive plans, (d) make up to $5.0 million in other restricted payments per year, and (e) make other restricted payments, subject to its compliance, on a pro forma basis, with (x) a lease-adjusted consolidated leverage ratio not to exceed 4.25 times and (y) the financial covenants applicable to the 2022 Revolver.

Borrowings under the 2022 Credit Agreement (other than any swingline loans) bear interest, at the borrower’s option, at rates based upon either the secured overnight financing rate (“SOFR”) or a base rate, plus, for each rate, a margin determined in accordance with a lease-adjusted consolidated leverage ratio-based pricing grid. The base rate is calculated as the highest of (a) the federal funds rate plus 0.50%, (b) the published Bank of America prime rate, or (c) Term SOFR with a term of one-month SOFR plus 1.00%. For Term SOFR loans, the margin is in the range of 1.25% to 2.25%, and for base rate loans the margin is in a range of 0.25% to 1.25%. Borrowings under the 2022 Revolver may be repaid and reborrowed. For borrowings under the 2022 Revolver during fiscal 2025, the interest rate range was 5.3%

to 7.75%. For borrowings under the 2022 Revolver during fiscal 2024, the interest rate range was 5.7% to 7.0%. The interest rate under the 2022 Revolver was 5.3% at December 31, 2025 and 5.7% at December 25, 2024. For the years ended December 31, 2025, December 25, 2024 and December 27, 2023, the Company had interest expense of $3.9 million, $5.4 million and $4.4 million, respectively, under the 2022 Revolver.

The 2022 Credit Agreement contains certain financial covenants. The Company was in compliance with all such covenants at December 31, 2025.

At December 31, 2025, $10.3 million of letters of credit and $51.0 million of borrowings were outstanding under the 2022 Revolver. The amount available under the 2022 Revolver was $88.7 million at December 31, 2025. At December 25, 2024, $10.3 million of letters of credit and $71.0 million of borrowings were outstanding under the 2022 Revolver.

Maturities

The 2022 Revolver and 2022 Credit Agreement will mature on July 27, 2027. During the year ended December 31, 2025, the Company borrowed $9.0 million and paid down $29.0 million on its 2022 Revolver. During the year ended December 25, 2024, the Company borrowed $14.0 million and paid down $27.0 million on its 2022 Revolver. There are no required principal payments prior to maturity for the 2022 Revolver.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

INCOME TAXES - Schedule of Net Deferred Tax Asset Classification (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 25, 2024
Income Tax [Line Items]
Assets (Liabilities) - state	$ 187	$ 336
Assets (Liabilities) - federal	(7,611)	(6,357)
State and Local Jurisdiction
Income Tax [Line Items]
Assets (Liabilities) - state	187	336
Federal
Income Tax [Line Items]
Assets (Liabilities) - federal	$ (7,611)	$ (6,357)

OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2025

OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES

Schedule of other accrued expenses and current liabilities

Other accrued expenses and current liabilities consist of the following (in thousands):


		December 31, 2025			December 25, 2024
Accrued sales and property taxes		$	6,408		$	5,349
Gift card liability			5,559			5,100
Loyalty rewards program liability			1,106			844
Accrued advertising			2,438			1,194
Accrued legal settlements and professional fees			902			463
Deferred franchise and development fees			546			539
Other			4,026			2,407
Total other accrued expenses and current liabilities		$	20,985		$	15,896

REVENUE FROM CONTRACTS WITH CUSTOMERS - Revenues Disaggregated by Geographic Market (Details) - Revenue - Geographic Concentration Risk	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
Disaggregation of Revenue [Line Items]
Percentage of concentration	100.00%	100.00%	100.00%
Greater Los Angeles area market
Disaggregation of Revenue [Line Items]
Percentage of concentration	71.90%	72.00%	71.30%
Other markets
Disaggregation of Revenue [Line Items]
Percentage of concentration	28.10%	28.00%	28.70%

- Definition

For an entity that discloses a concentration risk in relation to quantitative amount, which serves as the "benchmark" (or denominator) in the equation, this concept represents the concentration percentage derived from the division.

+ References + Details

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

TRADEMARKS AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2025

TRADEMARKS AND OTHER INTANGIBLE ASSETS

TRADEMARKS AND OTHER INTANGIBLE ASSETS

5. TRADEMARKS AND OTHER INTANGIBLE ASSETS

Domestic trademarks consist of the following (in thousands):


		December 31, 2025			December 25, 2024
Cost		$	120,700		$	120,700
Accumulated impairment charges			(58,812)			(58,812)
Trademarks, net		$	61,888		$	61,888

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	(Accumulated Deficit) Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Beginning balance (shares) at Dec. 28, 2022	37,008,061
Beginning balance at Dec. 28, 2022	$ 370	$ 292,244	$ (11,592)	$ 126	$ 281,148
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation		2,964			2,964
Issuance of common stock related to restricted shares, net	$ 5	(5)
Issuance of common stock related to restricted shares, net (shares)	454,081
Issuance of common stock upon exercise of stock options, net	$ 2	1,169			1,171
Issuance of common stock upon exercise of stock options, net (shares)	219,960
Shares repurchased for employee tax withholdings		(243)			(243)
Shares repurchased for employee tax withholdings (shares)	(26,344)
Repurchase of common stock	$ (61)	(59,155)			(59,216)
Repurchase of common stock (shares)	(6,030,850)
Repurchase of common stock - excise tax		(556)			(556)
Forfeiture of common stock related to restricted shares	$ (3)	3
Forfeiture of common stock related to restricted shares (shares)	(271,685)
Other comprehensive loss, net of income tax				$ (126)	(126)
Net income			25,554		25,554
Ending balance (shares) at Dec. 27, 2023	31,353,223
Ending balance at Dec. 27, 2023	$ 313	236,421	13,962		250,696
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation		3,931			3,931
Issuance of common stock related to restricted shares, net	$ 5	(5)
Issuance of common stock related to restricted shares, net (shares)	513,723
Issuance of common stock upon exercise of stock options, net	$ 2	1,554			$ 1,556
Issuance of common stock upon exercise of stock options, net (shares)	163,696				163,696
Shares repurchased for employee tax withholdings		(440)			$ (440)
Shares repurchased for employee tax withholdings (shares)	(36,689)
Repurchase of common stock	$ (21)		(20,563)		(20,584)
Repurchase of common stock (shares)	(2,069,931)
Repurchase of common stock - excise tax			(174)		(174)
Forfeiture of common stock related to restricted shares	$ (1)	1
Forfeiture of common stock related to restricted shares (shares)	(84,301)
Net income			25,684		25,684
Ending balance (shares) at Dec. 25, 2024	29,839,721
Ending balance at Dec. 25, 2024	$ 298	241,462	18,909		260,669
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation		5,396			5,396
Issuance of common stock related to restricted shares, net	$ 4	(4)
Issuance of common stock related to restricted shares, net (shares)	410,740
Issuance of common stock upon exercise of stock options, net	$ 1	1,104			$ 1,105
Issuance of common stock upon exercise of stock options, net (shares)	113,307				113,307
Shares repurchased for employee tax withholdings	$ (1)	(736)			$ (737)
Shares repurchased for employee tax withholdings (shares)	(71,917)
Repurchase of common stock	$ (1)		(1,841)		(1,842)
Repurchase of common stock (shares)	(163,229)
Forfeiture of common stock related to restricted shares	$ (2)	2
Forfeiture of common stock related to restricted shares (shares)	(171,237)
Net income			26,486		26,486
Ending balance (shares) at Dec. 31, 2025	29,957,385
Ending balance at Dec. 31, 2025	$ 299	$ 247,224	$ 43,554		$ 291,077

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
Revenue
Total revenue	$ 490,046	$ 473,008	$ 468,664
Cost of operations
Food and paper cost	100,083	100,725	108,250
Labor and related expenses	127,258	127,179	127,244
Occupancy and other operating expenses	106,386	99,280	101,398
Gain on recovery of insurance proceeds, lost profits, net		(300)	(327)
Company restaurant expenses	333,727	327,184	336,565
General and administrative expenses	50,258	46,270	42,025
Franchise expenses	47,762	42,307	38,404
Depreciation and amortization	15,966	15,717	15,235
Loss on disposal of assets	277	221	192
Gain on recovery of insurance proceeds, property, equipment and expenses		(41)	(247)
Loss (gain) on disposition of restaurants		7	(5,034)
Impairment and closed-store reserves	11	175	1,732
Total expenses	448,001	431,840	428,872
Income from operations	42,045	41,168	39,792
Interest expense, net	4,470	5,899	4,811
Income tax receivable agreement (income) expense		(20)	103
Income before provision for income taxes	37,575	35,289	34,878
Provision for income taxes	11,089	9,605	9,324
Net income	$ 26,486	$ 25,684	$ 25,554
Net income per share
Basic (usd per share)	$ 0.91	$ 0.86	$ 0.75
Diluted (usd per share)	$ 0.9	$ 0.86	$ 0.74
Weighted-average shares used in computing net income per share
Basic (shares)	29,178,940	29,850,256	34,253,542
Diluted (shares)	29,396,890	30,034,978	34,374,706
Company-operated restaurant revenue
Revenue
Total revenue	$ 405,817	$ 396,260	$ 398,437
Franchise revenue
Revenue
Total revenue	52,389	45,561	41,002
Franchise advertising fee revenue
Revenue
Total revenue	$ 31,840	$ 31,187	$ 29,225

LEASES (Tables)

12 Months Ended

Dec. 31, 2025

LEASES

Schedule of lease cost

The following table presents the Company’s total lease cost, net, disaggregated by underlying asset (in thousands):


	December 31, 2025								December 25, 2024									December 27, 2023
	Property			Equipment					Property			Equipment						Property			Equipment
	Leases			Leases			Total		Leases			Leases			Total			Leases			Leases			Total
Finance lease cost:
Amortization of right-of-use assets	$	84		$	118		$	202	$	76		$	100		$	176		$	73		$	2		$	75
Interest on lease liabilities		41			14			55		36			18			54			40			5			45
Operating lease cost:
Fixed rent cost		29,544			412			29,956		28,287			332			28,619			27,597			387			27,984
Short-term lease cost		—			52			52		—			1			1			—			8			8
Variable lease cost		534			1,449			1,983		553			1,344			1,897			546			1,279			1,825
Sublease income		(7,244)			—			(7,244)		(7,053)			—			(7,053)			(5,570)			—			(5,570)
Total lease cost, net	$	22,959		$	2,045		$	25,004	$	21,899		$	1,795		$	23,694		$	22,686		$	1,681		$	24,367

The following table presents the Company’s total lease cost on the consolidated statements of income (in thousands):


	December 31, 2025		December 25, 2024		December 27, 2023
Lease cost – Occupancy and other operating expenses	$	24,042	$	23,046	$	23,736
Lease cost – General & administrative		704		366		492

Lease cost – Depreciation and amortization		192		176		75
Lease cost – Interest expense		55		54		45
Lease cost – Closed-store reserve		11		52		19
Total lease cost, net	$	25,004	$	23,694	$	24,367

The Company had the following cash and non-cash activities associated with its leases (dollar amounts in thousands):


	December 31, 2025								December 25, 2024								December 27, 2023
	Property			Equipment					Property			Equipment					Property			Equipment
	Leases			Leases			Total		Leases			Leases			Total		Leases			Leases			Total
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	28,982		$	371		$	29,353	$	28,376		$	310		$	28,686	$	27,835		$	321		$	28,156
Financing cash flows used for finance leases	$	95		$	128		$	223	$	93		$	114		$	207	$	93		$	65		$	158

Non-cash investing and financing activities:
Operating lease ROU assets obtained in exchange for lease liabilities:
Operating lease ROU assets	$	17,464		$	3		$	17,467	$	20,504		$	1,294		$	21,798	$	21,448		$	54		$	21,502
Finance lease ROU assets obtained in exchange for lease liabilities:
Finance lease ROU assets	$	—		$	—		$	—	$	—		$	148		$	148	$	—		$	135		$	135
Derecognition of ROU assets due to terminations, impairment or modifications	$	—		$	—		$	—	$	—		$	—		$	—	$	(40)		$	(4)		$	(44)


Other Information
Weighted-average remaining years in lease term—finance leases		14.86			2.69					15.88			3.24					16.87			3.15
Weighted-average remaining years in lease term—operating leases		9.62			2.79					10.13			3.78					10.42			3.33
Weighted-average discount rate—finance leases		2.57	%		6.27	%				2.57	%		6.49	%				2.57	%		5.68	%
Weighted-average discount rate—operating leases		5.36	%		6.42	%				5.31	%		6.73	%				5.00	%		4.52	%

Schedule of Operating Leases

Information regarding the Company’s minimum future lease obligations at December 31, 2025 is as follows (in thousands):


		Finance Leases			Operating Leases
		Minimum			Minimum			Minimum
		Lease			Lease			Sublease
For the Years Ending		Payments			Payments			Income
December 30, 2026		$	169		$	28,905		$	5,680
December 29, 2027			159			28,199			5,704
December 27, 2028			115			24,763			5,410
December 26, 2029			99			21,972			4,834
December 25, 2030			93			19,079			4,485
Thereafter			957			102,570			29,750
Total		$	1,592		$	225,488		$	55,863
Less: imputed interest (2.57% - 6.42%)			(14)			(37,060)
Present value of lease obligations			1,578			188,428
Less: current maturities			(142)			(17,616)
Noncurrent portion		$	1,436		$	170,812

Schedule of Financing Leases

Information regarding the Company’s minimum future lease obligations at December 31, 2025 is as follows (in thousands):


		Finance Leases			Operating Leases
		Minimum			Minimum			Minimum
		Lease			Lease			Sublease
For the Years Ending		Payments			Payments			Income
December 30, 2026		$	169		$	28,905		$	5,680
December 29, 2027			159			28,199			5,704
December 27, 2028			115			24,763			5,410
December 26, 2029			99			21,972			4,834
December 25, 2030			93			19,079			4,485
Thereafter			957			102,570			29,750
Total		$	1,592		$	225,488		$	55,863
Less: imputed interest (2.57% - 6.42%)			(14)			(37,060)
Present value of lease obligations			1,578			188,428
Less: current maturities			(142)			(17,616)
Noncurrent portion		$	1,436		$	170,812

EARNINGS PER SHARE - Computation of Basic and Diluted Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
Numerator:
Net Income (Loss)	$ 26,486	$ 25,684	$ 25,554
Denominator:
Weighted-average shares outstanding-basic (shares)	29,178,940	29,850,256	34,253,542
Weighted-average shares outstanding-diluted (shares)	29,396,890	30,034,978	34,374,706
Net income per share-basic (usd per share)	$ 0.91	$ 0.86	$ 0.75
Net income per share-diluted (usd per share)	$ 0.9	$ 0.86	$ 0.74
Anti-dilutive securities not considered in diluted EPS calculation (shares)	1,041,605	742,663	972,181

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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-URI https://asc.fasb.org/1943274/2147483443/250-10-50-7

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 2
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-URI https://asc.fasb.org/1943274/2147482689/260-10-45-2

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (f)(4)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481538/470-20-65-4

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

INCOME TAXES

Schedule of Provision for Income Taxes


	December 31,		December 25,		December 27,
	2025		2024		2023
Current tax expense
U.S. Federal	$	6,569	$	8,945	$	6,572
U.S. State and local		3,117		3,517		1,846
Total current tax expense		9,686		12,462		8,418
Deferred tax expense (benefit)
U.S. Federal		1,254		(2,105)		(29)
U.S. State and local		149		(752)		935
Total deferred tax expense (benefit)		1,403		(2,857)		906
Total income tax expense
U.S. Federal		7,823		6,840		6,543
U.S. State and local		3,266		2,765		2,781
Total income tax expense	$	11,089	$	9,605	$	9,324

Schedule of Effective Income Tax rate


	December 31,					December 25,					December 27,
	2025					2024					2023
	Amount			Percent		Amount			Percent		Amount			Percent
U.S. federal statutory tax rate	$	7,891		21.0	%	$	7,411		21.0	%	$	7,324		21.0	%
State and local income taxes, net of federal income tax effect (1) (2)		2,580		6.9			2,157		6.1			2,185		6.3
Tax credits												—		—
WOTC credit		(164)		(0.4)			(163)		(0.5)			(295)		(0.7)
Nontaxable or nondeductible items
Stock option exercises		62		0.2			32		0.1			33		0.1
Nondeductible stock compensation expense		27		—			54		0.2			166		0.5
162(m) nondeductible executive compensation		614		1.6			6		—			194		0.6
Other		13		—			142		0.4			84		—
Changes in unrecognized tax benefits		—		—			—		—			—		—
Other adjustments		—		—			—		—			—		—
Deferred tax liability true up		66		0.2			—		—			(381)		(1.1)
Other		—		—			(34)		(0.1)			14		0.0

Effective tax rate	$	11,089		29.5	%	$	9,605		27.2	%	$	9,324		26.7	%

(1)	State taxes in California made up the majority (greater than 50 percent) of the tax effect in this category.

(2)	During fiscal 2023, the ten-year carryover period for California Enterprise Zone credits expired, and the Company released the corresponding valuation allowance.

Schedule Of Income Taxes Paid


	For the Fiscal Years Ended
Income Taxes Paid (Net of Refunds Received)	December 31, 2025		December 25, 2024		December 27, 2023
U.S. Federal	$	5,955	$	7,541	$	6,174
State:
California		3,766		2,720		1,503
Other		9		90		44

Total

9,730

10,351

7,721

Schedule of Deferred Tax Assets and Liabilities

The Company’s deferred tax assets and liabilities as of December 31, 2025 and December 25, 2024 are summarized below (in thousands).


		December 31,			December 25,
		2025			2024
Deferred assets:
Capital leases		$	75		$	69
Accrued vacation			482			466
Accrued legal			128			—
Accrued workers’ compensation			1,973			2,099
Accrued payroll			6			5
Net operating losses			5			5
Fixed assets			2,759			2,981
ROU liabilities			51,187			51,160
Other			7,297			7,893
Total deferred tax assets			63,912			64,678
Deferred liabilities:
Goodwill			(5,962)			(5,961)
Trademark			(16,812)			(16,808)
Prepaid expense			(1,051)			(1,012)
ROU assets			(45,631)			(45,790)
Fixed assets			(1,880)			(1,128)
Total deferred tax liabilities			(71,336)			(70,699)
Net deferred tax liability		$	(7,424)		$	(6,021)

Schedule of Deferred Tax Assets Classification


		December 31,			December 25,
		2025			2024
Noncurrent:
Assets - state		$	187		$	336
Liabilities - federal			(7,611)			(6,357)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment Owned, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
Property and Equipment, Net
Capitalized internal cost	$ 0.6	$ 0.6	$ 1.8
General and Administrative Expense
Property and Equipment, Net
Abandoned site and other site selection costs	$ 0.1	$ 0.0	$ 0.2
Buildings
Property and Equipment, Net
Estimated useful service lives	20 years
Land improvements \| Minimum
Property and Equipment, Net
Estimated useful service lives	3 years
Land improvements \| Maximum
Property and Equipment, Net
Estimated useful service lives	30 years
Building improvements \| Minimum
Property and Equipment, Net
Estimated useful service lives	3 years
Building improvements \| Maximum
Property and Equipment, Net
Estimated useful service lives	10 years
Restaurant equipment \| Minimum
Property and Equipment, Net
Estimated useful service lives	3 years
Restaurant equipment \| Maximum
Property and Equipment, Net
Estimated useful service lives	10 years
Other equipment \| Minimum
Property and Equipment, Net
Estimated useful service lives	2 years
Other equipment \| Maximum
Property and Equipment, Net
Estimated useful service lives	10 years

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2025	Dec. 25, 2024
CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (shares)	100,000,000	100,000,000
Shares designated as Series A Preferred Stock	100,000	100,000
Preferred stock, shares issued (shares)	0	0
Preferred stock, shares outstanding (shares)	0	0
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (shares)	200,000,000	200,000,000
Common stock, shares issued (shares)	29,957,385	29,839,721
Common stock, shares outstanding (shares)	29,957,385	29,839,721

STOCK-BASED COMPENSATION - Weighted Average Assumptions (Details) - Employee Stock Option	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	42.80%	44.10%
Risk-free interest rate	4.10%	4.60%
Expected term (years)	6 years	6 years 3 months
Expected dividends	0.00%	0.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)
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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2025	Mar. 06, 2026	Jun. 25, 2025
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2025
Document Transition Report	false
Securities Act File Number	001-36556
Entity Registrant Name	EL POLLO LOCO HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-3563182
Entity Address, Address Line One	575 Anton Blvd.
Entity Address, Address Line Two	Suite 1100
Entity Address, City or Town	Costa Mesa
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92626
City Area Code	714
Local Phone Number	599-5000
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Smaller reporting company	false
Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Shell Company	false
Entity Public Float			$ 133.9
Entity Common Stock, Shares Outstanding		29,956,259
Documents Incorporated by Reference [Text Block]	Part III hereof incorporates by reference certain portions of the registrant’s definitive proxy statement for its 2026 annual meeting of stockholders to be filed not later than 120 days after the end of the registrant’s 2025 fiscal year.
Auditor Name	BDO USA, P.C.
Auditor Firm ID	243
Auditor Location	Costa Mesa, California
Entity Central Index Key	0001606366
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	FY
Amendment Flag	false
Common Stock, par value $0.01 per share
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	LOCO
Security Exchange Name	NASDAQ
Rights to Purchase Series A Preferred Stock, par value $0.01 per share
Document Information [Line Items]
Title of 12(b) Security	Rights to Purchase Series A Preferred Stock, par value $0.01 per share
No Trading Symbol Flag	true
Security Exchange Name	NASDAQ

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2025

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES

14. COMMITMENTS AND CONTINGENCIES

Legal Matters

From time to time, the Company is involved in various claims such as wage and hour and other legal actions that arise in the ordinary course of business. The outcomes of these actions are not predictable but the Company does not believe that the ultimate resolution of these other actions will have a material adverse effect on its financial position, results of operations, liquidity, or capital resources. A significant increase in the number of claims, or an increase in amounts owing under successful claims, could materially and adversely affect its business, consolidated financial condition, results of operations, and cash flows.

Purchase Commitments

The Company has long-term beverage supply agreements with certain major beverage vendors. Pursuant to the terms of these arrangements, volume and marketing rebates are provided to the Company and its franchisees from the beverage vendors based upon the dollar volume of purchases for system-wide restaurants which will vary according to their demand for beverage syrup and fluctuations in the market rates for beverage syrup. These contracts have terms extending through the end of 2032.

At December 31, 2025, the Company’s total estimated commitment to purchase chicken was $26.2 million.

Contingent Lease Obligations

As a result of assigning the Company’s interest in obligations under real estate leases in connection with the sale of company-operated restaurants to some of the Company’s franchisees, the Company is contingently liable on three lease agreements. These leases have various terms, the latest of which expires in 2038. As of December 31, 2025, the potential amount of undiscounted payments the Company could be required to make in the event of non-payment by the primary lessees was $3.6 million. The present value of these potential payments discounted at the Company’s estimated pre-tax cost of debt at December 31, 2025 was $2.9 million. The Company’s franchisees are primarily liable on the leases. The Company has cross-default provisions with these franchisees that would put them in default of their franchise agreements in the event of non-payment under the leases. The Company believes that these cross-default provisions reduce the risk that payments will be required to be made under these leases.

Employment Agreements

As of December 31, 2025, the Company had employment agreements with three of the officers of the Company. These agreements provide for minimum salary levels, possible annual adjustments for cost-of-living changes, and incentive bonuses that are payable under certain business conditions.

Indemnification Agreements

The Company has entered into indemnification agreements with each of its current directors and officers. These agreements require the Company to indemnify these individuals to the fullest extent permitted under Delaware law against liabilities that may arise by reason of their service to the Company and to advance expenses incurred as a result of any proceeding against them as to which they could be indemnified. The Company also intends to enter into indemnification agreements with future directors and officers.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value Measurements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Property and equipment, net	$ 97,043	$ 86,149
Impairment of property and equipment	$ 0	$ 100	$ 1,500
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration]	Restructuring Costs and Asset Impairment Charges	Restructuring Costs and Asset Impairment Charges
Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Property and equipment, net			0
Right-of-Use Assets, Net			244
Impairment of property and equipment			1,497
Impairment Losses of Right-of-Use Assets			39
Nonrecurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Property and equipment, net			0
Nonrecurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Property and equipment, net			0
Nonrecurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Property and equipment, net			0
Right-of-Use Assets, Net			$ 244

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 25, 2024
Current assets:
Cash and cash equivalents	$ 6,228	$ 2,484
Accounts and other receivables, net	11,210	9,471
Inventories	1,810	1,938
Prepaid expenses and other current assets	6,369	5,509
Income tax receivable		493
Total current assets	25,617	19,895
Property and equipment, net	97,043	86,149
Property and equipment held under finance lease, net	1,303	1,499
Property and equipment held under operating leases, net ("ROU asset")	167,972	170,494
Goodwill	248,674	248,674
Trademarks	61,888	61,888
Deferred tax assets	187	336
Other assets	3,964	3,079
Total assets	606,648	592,014
Current liabilities:
Current portion of obligations under finance leases	142	170
Current portion of obligations under operating leases	17,616	19,738
Accounts payable	15,668	12,087
Accrued salaries and vacation	11,070	13,926
Accrued insurance	11,987	11,417
Accrued income taxes payable	1,567	2,105
Accrued interest	44	319
Current portion of income tax receivable agreement payable	0
Other accrued expenses and current liabilities	20,985	15,896
Total current liabilities	79,079	75,658
Revolver loan	51,000	71,000
Obligations under finance leases, net of current portion	1,436	1,583
Obligations under operating leases, net of current portion	170,812	170,529
Deferred tax liabilities, net	7,611	6,357
Other noncurrent liabilities	5,633	6,218
Total liabilities	315,571	331,345
Commitments and contingencies (Note 14)
Stockholders' equity
Preferred stock, $0.01 par value, 100,000,000 shares authorized; 100,000 shares designated as Series A Preferred Stock; none issued or outstanding
Common stock, $0.01 par value, 200,000,000 shares authorized; 29,957,385 and 29,839,721 shares issued and outstanding as of December 31, 2025 and December 25, 2024, respectively	299	298
Additional paid-in-capital	247,224	241,462
Retained earnings	43,554	18,909
Total stockholders' equity	291,077	260,669
Total liabilities and stockholders' equity	$ 606,648	$ 592,014

INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 25, 2024
Deferred assets:
Capital leases	$ 75	$ 69
Accrued vacation	482	466
Accrued legal	128
Accrued workers' compensation	1,973	2,099
Accrued payroll	6	5
Net operating losses	5	5
Fixed assets	2,759	2,981
ROU liabilities	51,187	51,160
Other	7,297	7,893
Total deferred tax assets	63,912	64,678
Deferred liabilities:
Goodwill	(5,962)	(5,961)
Trademark	(16,812)	(16,808)
Prepaid expense	(1,051)	(1,012)
ROU assets	(45,631)	(45,790)
Fixed assets	(1,880)	(1,128)
Total deferred tax liabilities	(71,336)	(70,699)
Net deferred tax liability	$ (7,424)	$ (6,021)

STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2025

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

12. STOCK-BASED COMPENSATION

Pursuant to the 2018 Omnibus Equity Incentive Plan the Company grants stock options (“options”), restricted stock units, performance-based stock units and restricted stock. On May 29, 2025, the Company’s stockholders approved an amendment to the Incentive Plan, under which the new aggregate share limit was increased by 1,250,000 shares for a total of 4,500,000 shares. As of December 31, 2025, 525,898 shares were available for grant.

During the years ended December 31, 2025, December 25, 2024 and December 27, 2023, the Company recognized stock-based compensation expense of $5.4 million, $3.9 million and $3.0 million, respectively. These expenses were included in general and administrative expenses consistent with the salary expense for the related grantees in the accompanying consolidated statements of income.

Stock Options

At December 31, 2025, options to purchase 1,233,984 shares of common stock of the Company were outstanding, including 444,364 vested and 789,620 unvested. Unvested options vest over time, or upon the Company’s achievement of annual financial goals. However, the compensation committee of the board of directors, as administrator of the Company’s Equity Incentive Plan, has the power to accelerate the vesting schedule of stock-based compensation, and, generally, in the event of an employee termination in connection with a change in control of the Company, any unvested portion of an award under the plan shall become fully vested. At December 31, 2025, there were no premium options that were granted above the stock price at date of grant. In fiscal 2025, the Company granted 525,493 options, with an exercise price equal to the fair market value of the common stock on the date of grant. The options granted in fiscal 2025 had a three year vesting period. Stock options generally expire ten years from the date of grant. In fiscal 2024, the Company granted 578,473 options, with an exercise price equal to the fair market value of the common stock on the date of grant. The options granted in fiscal 2024 had a four year vesting period. Stock options generally expire 10 years from the date of grant. Changes in options for the years ended December 31, 2025 and December 25, 2024, are as follows:


						Weighted-Average		Aggregate
				Weighted-Average		Contractual Life		Intrinsic Value
		Shares		Exercise Price		Life (Years)		(in thousands)
Outstanding - December 27, 2023		843,320		$	10.13
Grants		578,473			10.53
Exercised		(163,696)			9.50
Forfeited, cancelled or expired		(159,777)			10.66
Outstanding – December 25, 2024		1,098,320		$	10.36
Grants		525,493			10.43
Exercised		(113,307)			9.75
Forfeited, cancelled or expired		(276,522)			10.28
Outstanding – December 31, 2025		1,233,984		$	10.46		7.17	$	435
Vested and expected to vest at December 31, 2025		1,223,897		$	10.46		7.15	$	433
Exercisable at December 31, 2025		444,364		$	10.70		4.32	$	268

The intrinsic value of options exercised, calculated as the difference between the market value on the date of exercise and the exercise price, was $0.2 million, $0.3 million and $0.9 million for fiscal years 2025, 2024 and 2023, respectively.

The Company measures and recognizes compensation expense for the estimated fair value of stock options for employees based on the grant-date fair value of the award. For options that are based on a service requirement, the cost is recognized on a straight-line basis over the requisite service period, usually the vesting period. In order to calculate the Company’s stock options’ fair values and the associated compensation costs for share-based awards, the Company utilizes the Black–Scholes option pricing model and has developed estimates of various inputs including forfeiture rate, expected term, expected volatility, and risk-free interest rate. The forfeiture rate is based on historical rates and reduces the compensation expense recognized. The expected term for options granted is derived using the “simplified” method, in accordance with SEC guidance. The Company calculates the risk-free interest rate using the implied yield for a U.S. Treasury security with constant maturity and a remaining term equal to the expected term of the Company’s employee stock options. The Company does not anticipate paying any cash dividends for the foreseeable future and therefore uses an expected dividend yield of zero for option valuation purposes. Expected volatility is based on the Company’s historical data. Volatility is calculated by taking the historical daily closing equity prices of the Company, prior to the grant date, over a period equal to the expected term.

The weighted-average estimated fair value of employee stock options granted in fiscal 2025 and 2024 was $4.94 and $5.28 per share, respectively, using the Black–Scholes model with the following weighted-average assumptions used to value the option grants:


		December 31, 2025		December 25, 2024
Expected volatility		42.8	%	44.1	%
Risk-free interest rate		4.1	%	4.6	%
Expected term (years)		6.00		6.25
Expected dividends		—		—

As of December 31, 2025, the Company had total unrecognized compensation expense of $3 million related to unvested stock options, which the Company expects to recognize over a weighted average period of 2.3 years.

The above assumptions generally require judgment. If in the future the Company determines that another method is more reasonable, or if another method for calculating these input assumptions is prescribed by authoritative guidance, and, therefore, should be used to estimate volatility or expected term, the fair value calculated for the Company’s stock options could change significantly. Higher volatility and longer expected lives result in an increase to stock-based compensation expense determined at the date of grant.

The Company estimates its forfeiture rate based on an analysis of its actual forfeitures and will continue to evaluate the appropriateness of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover behavior, and other factors. Changes in the estimated forfeiture rate can have a significant effect on reported stock-based compensation expense, as the cumulative effect of adjusting the rate for all expense amortization is recognized in the period the forfeiture estimate is changed. If a revised forfeiture rate is higher than the previously-estimated forfeiture rate, an adjustment is made that will result in a decrease to the stock-based compensation expense recognized in the financial statements. If a revised forfeiture rate is lower than the previously-estimated forfeiture rate, an adjustment is made that will result in an increase to the stock-based compensation expense recognized in the financial statements. The effect of forfeiture adjustments was insignificant in fiscal 2025, 2024 and 2023. The Company will continue to use judgment in evaluating the expected term, volatility, and forfeiture rate related to its stock-based compensation.

Restricted Shares

In fiscal 2025 and 2024, 408,348 and 472,186 restricted share awards were granted, respectively, at the fair market value on the date of grant. The grants in fiscal 2025 vest based on continued service over one year for directors and three years for employees and the grants in fiscal 2024 vest based on continued service over one year for directors and four years for employees.

Changes in restricted shares for the years ended December 31, 2025 and December 25, 2024, are as follows:


				Weighted-Average
		Shares		Fair Value
Unvested shares at December 27, 2023		537,461		$	9.94
Granted		472,186		$	10.42
Released		(258,506)		$	9.86
Forfeited, cancelled, or expired		(84,301)		$	10.91
Unvested shares at December 25, 2024		666,840		$	10.19
Granted		408,348		$	10.42
Released		(286,914)		$	10.38
Forfeited and cancelled		(171,237)		$	10.31
Unvested shares at December 31, 2025		617,037		$	10.22

As of December 31, 2025, there was total unrecognized compensation expense of $4.3 million related to unvested restricted share awards, which the Company expects to recognize over a weighted-average period of 2.13 years.

During fiscal 2025, the Company granted 161,229 restricted stock units subject to performance-based vesting conditions based on Adjusted EBITDA and restaurant contribution margin to certain officers. Each performance-based restricted stock unit ("PSU") has a grant date fair value of $10.42 and a vesting period from the grant date through the date the audit of the Company's fiscal 2027 financial results is expected to be completed. The fair value of each PSU is expensed based on management's current estimate of the level that the performance goal will be achieved. As of December 31, 2025, based on the target level of performance, the total unrecognized compensation expense related to unvested performance stock units was $1.1 million, which is expected to be recognized over a weighted-average period of 2.05 years. Changes in performance-based shares for the years ended December 31, 2025 and December 25 2024, are as follows:


				Weighted-Average
		Shares		Fair Value
Unvested shares at December 27, 2023		—		$	—
Granted		41,537		$	9.63
Released		—		$	—
Forfeited, cancelled, or expired		—		$	—
Unvested shares at December 25, 2024		41,537		$	9.63
Granted		161,229		$	10.42
Released		(28,973)		$	9.63
Forfeited and cancelled		(35,988)		$	10.42
Unvested shares at December 31, 2025		137,805		$	10.34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) - USD ($) $ in Millions	May 29, 2024	Jul. 30, 2014	Dec. 31, 2025	Dec. 25, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Unrecognized tax benefits, accrual of interest or penalties			$ 0.0	$ 0.0
Percentage of cash savings in taxes realized as a result of utilizing net operating losses payable to pre-IPO stockholders		85.00%
Payment to seller for termination of obligations	$ 0.4
Remaining obligations owed			$ 0.0

DESCRIPTION OF BUSINESS

12 Months Ended

Dec. 31, 2025

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS

1. DESCRIPTION OF BUSINESS

El Pollo Loco Holdings, Inc. (“Holdings”) is a Delaware corporation headquartered in Costa Mesa, California. Holdings and its direct and indirect subsidiaries are collectively referred to herein as the “Company.” The Company’s activities are conducted principally through its indirect wholly-owned subsidiary, El Pollo Loco, Inc. (“EPL”), which develops, franchises, licenses and operates quick-service restaurants under the name El Pollo Loco ®. The restaurants, which are located principally in California but also in Arizona, Nevada, Texas, Colorado, Utah Louisiana, New Mexico and Washington, specialize in fire-grilling citrus-marinated chicken in a wide variety of contemporary Mexican and LA-inspired entrees, including specialty chicken burritos, chicken quesadillas, chicken tostada salads, chicken tortilla soup, variations on the Company’s Pollo Bowl®, Pollo Salads and Pollo Fit entrees. At December 31, 2025, the Company-operated 175 (132 in the greater Los Angeles area) and franchised 328 (148 in the greater Los Angeles area) El Pollo Loco restaurants. In addition, as of December 31, 2025, the Company licensed 8 restaurants in the Philippines.

Holdings has no material assets or operations. Holdings and Holdings’ direct subsidiary, EPL Intermediate, Inc. (“Intermediate”), guarantee EPL’s 2022 Revolver (see Note 7 “Long-Term Debt”) on a full and unconditional basis and Intermediate has no subsidiaries other than EPL. EPL is a separate and distinct legal entity, and has no obligation to make funds available to Intermediate. EPL and Intermediate may pay dividends to Intermediate and to Holdings, respectively.

The Company operates in one operating segment. All significant revenues relate to retail sales of food and beverages through either company-operated or franchised-operated restaurants.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2025

PREPAID EXPENSES AND OTHER CURRENT ASSETS

PREPAID EXPENSES AND OTHER CURRENT ASSETS

3. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following (in thousands):


		December 31, 2025			December 25, 2024
Prepaid insurance		$	2,634		$	2,574
Prepaid service fees			2,953			2,255
Other current assets			782			680
Total prepaid expenses and other current assets		$	6,369		$	5,509

LEASES

12 Months Ended

Dec. 31, 2025

LEASES

LEASES

6. LEASES

Nature of leases

The Company’s operations utilize property, facilities, equipment and vehicles leased from others. Additionally, the Company has various contracts with vendors that have been determined to contain an embedded lease in accordance with Topic 842.

As of December 31, 2025, the Company had no leases that it had entered into, but had not yet commenced.

Building and facility leases

The majority of the Company’s building and facilities leases are classified as operating leases; however, the Company currently has one facility and 24 equipment leases that are classified as finance leases.

Restaurants are operated under lease arrangements that generally provide for a fixed base rent and, in some instances, contingent rent based on a percentage of gross sales or net revenues in excess of a defined amount. Additionally, a number of the Company’s leases have payments, which increase at pre-determined dates based on the change in the consumer price index. For all leases, the Company also reimburses the landlord for non-lease components, or items that are not considered components of a contract, such as common area maintenance, property tax and insurance costs. While the Company determined not to separate lease and non-lease components, these payments are based on actual costs, making them variable consideration and excluding them from the calculations of the ROU asset and lease liability.

The initial terms of land and restaurant building leases are generally 20 years, exclusive of options to renew. These leases typically have four 5-year renewal options, which have generally been excluded in the calculation of the ROU asset and lease liability, as they are not considered reasonably certain to be exercised, unless there have been significant leasehold improvements that have a useful life that extend past the original lease term. Furthermore, there are no residual value guarantees and no restrictions imposed by the lease.

During the year ended December 31, 2025 and December 25, 2024, the Company reassessed the lease terms on 19 and 28 restaurants, respectively, due to certain triggering events, such as the addition of significant leasehold improvements with useful lives that extend past the current lease expiration, the decision to terminate a lease, or the decision to renew or extend a lease or exercise a lease option. As a result of the reassessment, an additional $11.3 million and $20.5 million, respectively, of ROU asset and lease liabilities were recognized for the year ended December 31, 2025 and December 25, 2024, and will be amortized over the new lease term. For the year ended December 31, 2025, the Company had five lease commencements resulting in $6.2 million. For the year ended December 25, 2024, the Company had no lease commencements.

There were no reassessments that impacted the original lease classification during the year ended December 31, 2025 or December 25, 2024. Additionally, as the Company adopted all practical expedients available under Topic 842, no reallocation between lease and non-lease components was necessary.

The Company also subleases facilities to certain franchisees and other non-related parties which are also considered operating leases. Sublease income also includes contingent rental income based on net revenues. The vast majority of these leases have rights to extend terms via fixed rental increases. However, none of these leases have early termination rights, the right to purchase the premises or any residual value guarantees. The Company does not have any related party leases.

During fiscal 2025 and fiscal 2024, the Company did not record any non-cash impairment charges. During fiscal 2023, the Company determined that the carrying value of ROU assets at one restaurant was not recoverable. As a result, the Company recorded a less than $0.1 million non-cash impairment charge for the year ended December 27, 2023 related to one restaurant in California.

Equipment

Leases of equipment primarily consist of restaurant equipment, copiers and vehicles. These leases are fixed payments with no variable component. Additionally, no optional renewal periods have been included in the calculation of the ROU asset, there are no residual value guarantees and no restrictions imposed.

Significant Assumptions and Judgments

In applying the requirements of Topic 842, the Company made significant assumptions and judgments related to determination of whether a contract contains a lease and the discount rate used for the lease.

In determining if any of the Company’s contracts contain a lease, the Company made assumptions and judgments related to its ability to direct the use of any assets stated in the contract and the likelihood of renewing any short-term contracts for a period extending past twelve months.

The Company also made significant assumptions and judgments in determining an appropriate discount rate for property leases. These included using a consistent discount rate for a portfolio of leases entered into at varying dates, using the full 20-year term of the lease, excluding any options, and using the total minimum lease payments. The Company utilizes a third-party valuation firm in determining the discount rate, based on the above assumptions. For all other leases, the Company uses the discount rate implicit in the lease, or the Company’s incremental borrowing rate.

As the Company has adopted the practical expedient not to separate lease and non-lease components, no significant assumptions or judgments were necessary in allocating consideration between these components, for all classes of underlying assets.

The following table presents the Company’s total lease cost, net, disaggregated by underlying asset (in thousands):


	December 31, 2025								December 25, 2024									December 27, 2023
	Property			Equipment					Property			Equipment						Property			Equipment
	Leases			Leases			Total		Leases			Leases			Total			Leases			Leases			Total
Finance lease cost:
Amortization of right-of-use assets	$	84		$	118		$	202	$	76		$	100		$	176		$	73		$	2		$	75
Interest on lease liabilities		41			14			55		36			18			54			40			5			45
Operating lease cost:
Fixed rent cost		29,544			412			29,956		28,287			332			28,619			27,597			387			27,984
Short-term lease cost		—			52			52		—			1			1			—			8			8
Variable lease cost		534			1,449			1,983		553			1,344			1,897			546			1,279			1,825
Sublease income		(7,244)			—			(7,244)		(7,053)			—			(7,053)			(5,570)			—			(5,570)
Total lease cost, net	$	22,959		$	2,045		$	25,004	$	21,899		$	1,795		$	23,694		$	22,686		$	1,681		$	24,367

The following table presents the Company’s total lease cost on the consolidated statements of income (in thousands):


	December 31, 2025		December 25, 2024		December 27, 2023
Lease cost – Occupancy and other operating expenses	$	24,042	$	23,046	$	23,736
Lease cost – General & administrative		704		366		492

Lease cost – Depreciation and amortization		192		176		75
Lease cost – Interest expense		55		54		45
Lease cost – Closed-store reserve		11		52		19
Total lease cost, net	$	25,004	$	23,694	$	24,367

The Company had the following cash and non-cash activities associated with its leases (dollar amounts in thousands):


	December 31, 2025								December 25, 2024								December 27, 2023
	Property			Equipment					Property			Equipment					Property			Equipment
	Leases			Leases			Total		Leases			Leases			Total		Leases			Leases			Total
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	28,982		$	371		$	29,353	$	28,376		$	310		$	28,686	$	27,835		$	321		$	28,156
Financing cash flows used for finance leases	$	95		$	128		$	223	$	93		$	114		$	207	$	93		$	65		$	158

Non-cash investing and financing activities:
Operating lease ROU assets obtained in exchange for lease liabilities:
Operating lease ROU assets	$	17,464		$	3		$	17,467	$	20,504		$	1,294		$	21,798	$	21,448		$	54		$	21,502
Finance lease ROU assets obtained in exchange for lease liabilities:
Finance lease ROU assets	$	—		$	—		$	—	$	—		$	148		$	148	$	—		$	135		$	135
Derecognition of ROU assets due to terminations, impairment or modifications	$	—		$	—		$	—	$	—		$	—		$	—	$	(40)		$	(4)		$	(44)


Other Information
Weighted-average remaining years in lease term—finance leases		14.86			2.69					15.88			3.24					16.87			3.15
Weighted-average remaining years in lease term—operating leases		9.62			2.79					10.13			3.78					10.42			3.33
Weighted-average discount rate—finance leases		2.57	%		6.27	%				2.57	%		6.49	%				2.57	%		5.68	%
Weighted-average discount rate—operating leases		5.36	%		6.42	%				5.31	%		6.73	%				5.00	%		4.52	%

Information regarding the Company’s minimum future lease obligations at December 31, 2025 is as follows (in thousands):


		Finance Leases			Operating Leases
		Minimum			Minimum			Minimum
		Lease			Lease			Sublease
For the Years Ending		Payments			Payments			Income
December 30, 2026		$	169		$	28,905		$	5,680
December 29, 2027			159			28,199			5,704
December 27, 2028			115			24,763			5,410
December 26, 2029			99			21,972			4,834
December 25, 2030			93			19,079			4,485
Thereafter			957			102,570			29,750
Total		$	1,592		$	225,488		$	55,863
Less: imputed interest (2.57% - 6.42%)			(14)			(37,060)
Present value of lease obligations			1,578			188,428
Less: current maturities			(142)			(17,616)
Noncurrent portion		$	1,436		$	170,812

Short-Term Leases

The Company has multiple short-term leases, which have terms of less than 12 months, and thus were excluded from the recognition requirements of Topic 842. The Company has recognized these lease payments in its consolidated statements of income on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred.

Lessor

The Company is a lessor for certain property, facilities and equipment owned by the Company and leased to others, principally franchisees, under non-cancelable leases with initial terms ranging from 3 to 20 years. These lease agreements generally provide for a fixed base rent and, in some instances, contingent rent based on a percentage of gross sales or net revenues. All leases are considered operating leases.

For the leases in which the Company is the lessor, there are options to extend the lease. However, there are no terms and conditions to terminate the lease, no right to purchase premises and no residual value guarantees. Additionally, there are no related party leases.

For the years ended December 31, 2025, December 25, 2024, and December 27, 2023, the Company received $0.4 million, $0.4 million and $0.3 million, respectively, of lease income from company-owned locations.

INCOME TAXES - Schedule of Income taxes components (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
Current tax expense (benefit)
US Federal	$ 6,569	$ 8,945	$ 6,572
US State and local	3,117	3,517	1,846
Total current tax expense (benefit)	9,686	12,462	8,418
Deferred tax expense (benefit)
US Federal	1,254	(2,105)	(29)
US State and local	149	(752)	935
Total deferred tax expense (benefit)	1,403	(2,857)	906
Total income tax expense (benefit)
US Federal	7,823	6,840	6,543
US State and local	3,266	2,765	2,781
Total income tax expense (benefit)	$ 11,089	$ 9,605	$ 9,324

OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES - Schedule of Other Accrued Expenses and Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 25, 2024
OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES
Accrued sales and property taxes	$ 6,408	$ 5,349
Gift card liability	5,559	5,100
Loyalty rewards program liability	1,106	844
Accrued advertising	2,438	1,194
Accrued legal settlements and professional fees	902	463
Deferred franchise and development fees	546	539
Other	4,026	2,407
Total other accrued expenses and current liabilities	$ 20,985	$ 15,896

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impairment of Property and Equipment and ROU Assets (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2025 USD ($)	Dec. 25, 2024 USD ($) restaurant	Dec. 27, 2023 USD ($) restaurant
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating Lease ROU assets	$ 167,972	$ 170,494
California
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Asset impairment charges			$ 1,500
Number of restaurants with ROU asset impairment charges \| restaurant			1
Nevada
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Asset impairment charges		$ 100
Number of restaurants with long-lived assets impairment charges \| restaurant		2	1
Closed Or Subleased Restaurant Locations
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating Lease ROU assets	28,900	$ 39,100
Closed-store reserve expense		$ 100	$ 200
Closed Or Subleased Restaurant Locations \| Maximum
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Closed-store reserve expense	$ 100

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

12 Months Ended

Dec. 31, 2025

Disaggregation of Revenue [Line Items]

Schedule of revenues disaggregated by geographic market


		December 31, 2025			December 25, 2024			December 27, 2023
Greater Los Angeles area market		71.9	%		72.0	%		71.3	%
Other markets		28.1	%		28.0	%		28.7	%
Total		100	%		100	%		100	%

Schedule of Estimated Revenue to be Recognized Related to Performance Obligations

The following table illustrates the estimated revenue to be recognized in the future related to performance obligations that are unsatisfied as of December 31, 2025 (in thousands):


Franchise revenues:
2026	$	552
2027		540
2028		523
2029		495
2030		470
Thereafter		3,573
Total	$	6,153

Loyalty reward program

Disaggregation of Revenue [Line Items]

Schedule of Change in Franchise Contract Liability Balances

Changes in the loyalty rewards program liability included in other accrued expenses and current liabilities on the consolidated balance sheets were as follows (in thousands):


	December 31, 2025			December 25, 2024
Loyalty rewards liability, beginning balance	$	844		$	687
Revenue deferred		2,667			2,181
Revenue recognized		(2,405)			(2,024)
Loyalty rewards liability, ending balance	$	1,106		$	844

Gift card liability

Disaggregation of Revenue [Line Items]

Schedule of Change in Franchise Contract Liability Balances

The gift card liability included in other accrued expenses and current liabilities on the consolidated balance sheets was as follows (in thousands):


	December 31, 2025		December 25, 2024
Gift card liability	$	5,559	$	5,100

Revenue recognized from the redemption of gift cards that was included in other accrued expenses and current liabilities at the beginning of the year was as follows (in thousands):



	December 31, 2025		December 25, 2024		December 27, 2023
Revenue recognized from gift card liability balance at the beginning of the year	$	863	$	1,059	$	1,064

Franchise revenue

Disaggregation of Revenue [Line Items]

Schedule of Change in Franchise Contract Liability Balances

The following table provides information about the change in the franchise contract liability balances during the year ended December 31, 2025 and December 25, 2024 (in thousands):


December 27, 2023	$	6,997
Revenue recognized		(625)
Additional contract liability		358
December 25, 2024	$	6,730
Revenue recognized		(1,150)
Additional contract liability		573
December 31, 2025	$	6,153

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-7

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 91
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479777/606-10-55-91

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 91
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479777/606-10-55-91

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 91
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479777/606-10-55-91

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 91
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479777/606-10-55-91

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 91
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479777/606-10-55-91

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 91
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479777/606-10-55-91

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 91
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479777/606-10-55-91

+ Details

LEASES - Lessor (Details) - USD ($) $ in Millions	12 Months Ended
LEASES - Lessor (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
Lessor, Lease, Description [Line Items]
Option to extend	true
Option to terminate	false
Option to purchase underlying asset	false
Operating lease income	$ 0.4	$ 0.4	$ 0.3
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Revenue from Contract with Customer, Including Assessed Tax	Revenue from Contract with Customer, Including Assessed Tax	Revenue from Contract with Customer, Including Assessed Tax
Minimum
Lessor, Lease, Description [Line Items]
Lessor, operating lease term of contract	3 years
Maximum
Lessor, Lease, Description [Line Items]
Lessor, operating lease term of contract	20 years

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 26,486	$ 25,684	$ 25,554

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

REVENUE FROM CONTRACTS WITH CUSTOMERS - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2025 USD ($) item	Dec. 25, 2024 USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Number of revenue streams \| item	2
Loyalty Rewards Program, Expiration Period For Inactivity	1 year
Accrued loyalty rewards program liability	$ 1.1	$ 0.8
Loyalty Rewards Program, Expected Loyalty Points Redemption Period	1 year
Franchise Rights
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Franchise agreement term	20 years
Renewal period	20 years
Hardware Services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Unsatisfied performance obligations	$ 0.0

STOCK-BASED COMPENSATION - Changes in Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024
Shares
Outstanding-beginning balance (shares)	1,098,320	843,320
Grants (shares)	525,493	578,473
Exercised (shares)	(113,307)	(163,696)
Forfeited, cancelled or expired (shares)	(276,522)	(159,777)
Outstanding-ending balance (shares)	1,233,984	1,098,320
Vested and expected to vest at end of period (shares)	1,223,897
Exercisable at end of period (shares)	444,364
Weighted-Average Exercise Price
Outstanding-beginning balance (usd per share)	$ 10.36	$ 10.13
Grants (usd per share)	10.43	10.53
Exercised (usd per share)	9.75	9.5
Forfeited, cancelled or expired (usd per share)	10.28	10.66
Outstanding-ending balance (usd per share)	10.46	$ 10.36
Vested and expected to vest at end of period (usd per share)	10.46
Exercisable at end of period (usd per share)	$ 10.7
Weighted-Average Contractual Life (Years)
Outstanding contractual life (years)	7 years 2 months 1 day
Vested and expected to vest contractual life (years)	7 years 1 month 24 days
Exercisable contractual life (years)	4 years 3 months 25 days
Aggregate Intrinsic Value
Outstanding	$ 435
Vested and expected to vest	433
Exercisable	$ 268

REVENUE FROM CONTRACTS WITH CUSTOMERS - Loyalty Reward Liability and Gift Card Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024	Dec. 27, 2023
Change in Contract with Customer, Liability [Roll Forward]
Gift card liability	$ 5,559	$ 5,100
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2031-12-25
Change in Contract with Customer, Liability [Roll Forward]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period
Gift card liability
Change in Contract with Customer, Liability [Roll Forward]
Gift card liability	$ 5,559	5,100
Revenue recognized from gift card liability balance at the beginning of the year	863	1,059	$ 1,064
Loyalty reward program
Change in Contract with Customer, Liability [Roll Forward]
Loyalty rewards liability, beginning balance	844	687
Revenue deferred	2,667	2,181
Revenue recognized	(2,405)	(2,024)
Loyalty rewards liability, ending balance	$ 1,106	$ 844	$ 687
Loyalty reward program \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Change in Contract with Customer, Liability [Roll Forward]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year

INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 25, 2024
Investments, Owned, Federal Income Tax Note [Line Items]
Increase in valuation allowance	$ 0.0	$ 0.0
Unrecognized Tax Benefits, Interest on Income Taxes Accrued	0.0	0.0
Unrecognized Tax Benefits, Income Tax Penalties Accrued	0.0	$ 0.0
Federal
Investments, Owned, Federal Income Tax Note [Line Items]
Net operating loss carryforwards	0.0
State and Local Jurisdiction
Investments, Owned, Federal Income Tax Note [Line Items]
Net operating loss carryforwards	$ 0.1

Insider Trading Arrangements - Mr Mark Buller [Member]	3 Months Ended
Insider Trading Arrangements - Mr Mark Buller [Member]	Dec. 31, 2025 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On November 21, 2024, Mr. Mark Buller, a member of our Board of Directors, entered into a Rule 10b5-1 trading agreement. The 10b5-1 Plan provides for the sale of up to 12,271 shares of the Company’s common stock, subject to certain conditions. This trading plan was adopted during an open trading window and expired on December 31, 2025.
Name	Mr. Mark Buller
Title	member of our Board of Directors
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	November 21, 2024
Expiration Date	December 31, 2025
Aggregate Available	12,271

OTHER NONCURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2025

OTHER NONCURRENT LIABILITIES

Schedule of other noncurrent liabilities

Other noncurrent liabilities consist of the following (in thousands):


		December 31, 2025			December 25, 2024
Deferred franchise and development fees		$	5,607		$	6,191
Other			26			27
Total other noncurrent liabilities		$	5,633		$	6,218

EARNINGS PER SHARE - Narrative (Details) - USD ($)				3 Months Ended	12 Months Ended
EARNINGS PER SHARE - Narrative (Details) - USD ($)	May 23, 2024	Dec. 04, 2023	Aug. 07, 2023	Mar. 31, 2025	Dec. 31, 2025	Dec. 27, 2023	Nov. 02, 2023
EARNINGS PER SHARE
Authorized amount under share repurchase agreement							$ 20,000,000
Amount remained available for repurchases						$ 7,400,000
FS Equity Partners V, L.P. and FS Affiliates V, L.P
EARNINGS PER SHARE
Shares repurchased		1,500,000
Total consideration		$ 12,600,000
2023 Stock Repurchase Plan
EARNINGS PER SHARE
Shares repurchased price			$ 10.63
Number of shares authorized to be repurchased			2,500,000
Total consideration			$ 26,600,000
2023 Share Repurchase Program
EARNINGS PER SHARE
Shares repurchased				163,229	535,628
Total consideration					$ 5,600,000
Amount remained available for repurchases				$ 1,800,000	$ 1,800,000
Stock Repurchase Agreement
EARNINGS PER SHARE
Shares repurchased price	$ 9.785
Number of shares authorized to be repurchased	1,534,303
Total consideration	$ 15,000,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2025

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Summary of estimated useful service lives

The estimated useful service lives are as follows:


Buildings		20 years
Land improvements		3—30 years
Building improvements		3—10 years
Restaurant equipment		3—10 years
Other equipment		2—10 years
Property/equipment held under finance leases		Shorter of useful life or lease term
Leasehold improvements		Shorter of useful life or lease term

Summary of non-financial instruments measured at fair value on nonrecurring basis


	Total			Level 1			Level 2			Level 3			Impairment Losses
Certain property and equipment, net	$	—		$	—		$	—		$	—		$	1,497
Certain ROU assets, net	$	244		$	—		$	—		$	244		$	39